Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 14 May 2024 13:39:56 GMT by Jon Porter
I have recently been made redundant and left the business last Friday, I am due a PILON payment & redundancy later in the month. I'd like to keeping paying in money into my pension but I understand there is an allowance of £2,800 when unemployed. I'd want to pay in more that that while I am unemployed. Question is if I paid in a lump sum now into my pension would that count towards the annual allowance of £60,000 or would I already be using up the £2,800 allowance as soon as I left the business? If so as I have and will have paid tax up until the end of my notice does that increase the amount of my pension allowance? Any help would be much appreciated, thanks.
Posted Thu, 16 May 2024 15:51:09 GMT by HMRC Admin 20 Response
Hi Jon Porter,
The maximum payment into your pension scheme that will qualify for tax relief is the lower of your income in the tax year or £60000, so long as your annual income remains below the income limit.  Please have a look at these links for more information.
Pension schemes rates
Pension schemes rates and allowances
Thank you.

You must be signed in to post in this forum.