Tax relief on personal contributions
Your contributions to the RSP qualify for tax relief at your highest marginal rate of taxation. This means that the amount actually deducted from your pay is less than you might think.
How are deductions from my pay calculated?
Let’s look at an example:
How are IMI’s contributions calculated?
IMI’s contributions are calculated in exactly the same way as for the member. So using our example where the member has chosen to pay contributions of 6%, IMI will match these in full. This means that the member’s investment of £125, even though the cost to the member is £100 after tax relief, is doubled to £250.
So in summary, for a reduction in take home pay of £100 a month, the member will have a total of £250 invested into the RSP.
To see how the cost to the member can be further reduced please also see the Salary Sacrifice section, click here for further information.