Hello,
I'm trying to understand the calculation for Tapered Pension Allowance for 2020/21 for a simple case with only salary income and workplace pension contributions.
Could someone please confirm if I have got it right:
1. Start with taxable income from P60: £236,000.
2. No other income and no deductions apart from pension.
3. Employee contribution to workplace pension: £23,000
4. Employer contribution to workplace pension: £10,000
5. Threshold Income: £236,000 - £23,000 = £213,000.
6. Threshold Income > £200,000 so tapering applies.
7. Adjusted Income: £236,000 + £10,000 = £246,000.
8. Tapered Allowance: £40,000 - £6000/2 = £37,000
Does this look correct. Thanks for helping!
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