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Posted Thu, 25 Apr 2024 08:53:25 GMT by Safina Kausar
Hi there, I am wanting to calculate the pension input for the purpose of checking whether an individuals threshold income/adjusted income exceeds the limits of £200k/260k and subsequently check whether or not they have exceeded their annual allowance amount during the 2023-2024 tax year. The individual contributes into a work place pension via net pay arrangement. The scheme is a defined benefit scheme which is a 'careers average' scheme ( not a final salary scheme). Please can you provide guidance on how I can calculate the pension input for a career average scheme. I understand with the final salary scheme I would need to use their final salary for the beginning of the year and the end of the year when working out the opening and closing value to establish the increase in value of the individuals rights during the tax year. How would it work for a career average scheme please? Many thanks for your help in advance
Posted Wed, 01 May 2024 07:41:42 GMT by HMRC Admin 5
Hi 

Please refer to Work out your reduced (tapered) annual allowance

Thank you

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