The recent tax reforms to be enforced from April 6th will help the Britons save more during for their retirement. As per the traditional tax-contribution a person in his employment period could give only a portion of his income, but as per the new reform an employee can put his entire earnings into the retirement fund up to a maximum limit of 215,000 pounds. This reform is called as A-Day and as per the new reforms the 8 tax codes will be replaced by a new rule that would help the Britons to save more up to a free tax limit of 1.5mn pounds in the 2006-07 financial year.



This limit may rise in the coming years. This reform might pool in savings quickly but it might not be very practical as the employees need to divide the savings in their household expenses. They can save their earnings every month to give it in full, in order to give their full portion.