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Where Taxpayers and Advisers Meet

Pension contribution limit calculation

Nimi Jane
Posts:3
Joined:Wed Apr 03, 2019 10:19 pm
Pension contribution limit calculation

Postby Nimi Jane » Sat Feb 08, 2020 5:55 pm

Hi,

I am trying to work out what is the maximum amount I will have to contribute myself (excluding employer contribution) to reach the 40K limit for this year as a higher rate taxpayer.

Does the 40K annual limit to pension contribution, include the employer contribution and/or tax relief for a higher rate taxpayer? And if so does that mean the actual amount I can contribute myself would be 40K minus the (Employer contribution + Tax relief)?

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Pension contribution limit calculation

Postby darthblingbling » Sat Feb 08, 2020 7:07 pm

It's gross contributions.

Employers, employees, gross contributions to your personal pensions.

If you have any DB pensions it can get a bit tricky.

Nimi Jane
Posts:3
Joined:Wed Apr 03, 2019 10:19 pm

Re: Pension contribution limit calculation

Postby Nimi Jane » Sat Feb 08, 2020 10:24 pm

does it also include the tax relief received?

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Pension contribution limit calculation

Postby AdamS93 » Sun Feb 09, 2020 12:29 pm

Yes.

It includes all your 'pension input' which includes gross personal pension contributions, employee contributions and employer contributions.

The annual allowance of £40k may get tapered if your threshold income exceeds £110,000. You can carry forward any unused annual allowances from the previous 3 years if certain conditions are met.

Your best bet it to get professional advice on this matter.


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