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Where Taxpayers and Advisers Meet

Pension contribution and tax bracket

Meena
Posts: 3
Joined: Mon Jan 21, 2019 2:29 pm

Pension contribution and tax bracket

Postby Meena » Mon Jan 21, 2019 2:59 pm

Can I contribute X% of my annual salary to pension plan to bring down my tax bracket?

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Pension contribution and tax bracket

Postby AmanSood » Wed Jan 23, 2019 11:31 am

yes you can subject to the qualifying conditions for the pension scheme being met.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

Meena
Posts: 3
Joined: Mon Jan 21, 2019 2:29 pm

Re: Pension contribution and tax bracket

Postby Meena » Wed Jan 23, 2019 11:43 am

yes you can subject to the qualifying conditions for the pension scheme being met.
Could you please help me with the conditions? Are these standard ones applicable to all or are these specific to the pension scheme you choose? Also, are there any different rules applicable depending on your annual income?

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: Pension contribution and tax bracket

Postby AmanSood » Wed Jan 23, 2019 12:15 pm

provided you can get confirmation that the pension scheme is approved from a UK perspective then the contributions would qualify for tax relief. Yes there would be a cap on your contributions which would qualify for tax relief depending on your total income in the tax year. Depending on the amounts involved, i'd suggest getting a tax advisor to look into your situation in more detail and they can provide tailored advice on the best approach.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

Meena
Posts: 3
Joined: Mon Jan 21, 2019 2:29 pm

Re: Pension contribution and tax bracket

Postby Meena » Wed Jan 23, 2019 5:08 pm

provided you can get confirmation that the pension scheme is approved from a UK perspective then the contributions would qualify for tax relief. Yes there would be a cap on your contributions which would qualify for tax relief depending on your total income in the tax year. Depending on the amounts involved, i'd suggest getting a tax advisor to look into your situation in more detail and they can provide tailored advice on the best approach.
Thanks Aman ! I can contribute to pension scheme through my employer. I already do that.. So, I guess it is approved from UK perspective. For an annual income of £180K, can we contribute 85K towards pension plan so that it falls under lower tax bracket? also, I have not contributes to pension scheme in previous years. So, if there is any limit on the contribution qualifying for tax relief, can I use previous year's unused allowance?


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