HOW TO FIND FREE CASH

SELF-EMPLOYED workers are just as entitled to tax relief on their pensions as employees. This means that for every £80 they put in a pension, the Government will top it up to £100. Higher-rate taxpayers only need to put £60 into a pension for it to be topped up to £100.

But unlike employees, offered workplace pension schemes, selfemployed workers must open and manage a pension themselves.

Stakeholder pensions must meet Government requirements, such as limiting fees charged. Another option is a self-invested personal pension.

Rosie Richard at wealth manager Hargreaves Lansdown says: ‘A Sipp gives you flexibility. You pay regular monthly amounts and add payments as and when you can.’

A Lifetime Isa is another option, which offers a 25 per cent tax free bonus on everything you are able to save, up to a maximum of £4,000 every year. This can be a good choice for basic-rate taxpayers, and is available to savers under the age of 40.