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Posted Fri, 04 Nov 2022 16:59:20 GMT by Sumit Dargad
This refers to HMRC guide on Tapered annual allowance for pension saving at following link. https://www.gov.uk/guidance/pension-schemes-work-out-your-tapered-annual-allowance First step is “Work out your net income” First sub-step is “Add up your taxable income for the tax year.” The first component of “taxable income” is “earnings from employment” Should the “earnings from employment” include the statutory contribution to pension by the employer? It is 15% of basic pay in my case. I suppose, it should not – because it is an investment, not income, at least till you retire & start getting your pension. Can someone confirm? Thanks. Suggest HMRC clarifies this on their portal at above link.
Posted Wed, 09 Nov 2022 13:49:51 GMT by HMRC Admin 32
Hi,

This depends on whether the pension had tax reilef but was paid before the relief was given.

You can find further guidance here:

Work out your reduced (tapered) annual allowance

Thank you.
Posted Wed, 23 Nov 2022 04:24:51 GMT by Sumit Dargad
WarningThis post is currently being moderated and will be visible when it has been approved by a HMRC moderator.
Posted Thu, 24 Nov 2022 15:47:14 GMT by HMRC Admin 10
Hi
From the information given, the component under C2 is not part of your actual income when working out the tapered allowance.
Thankyou.
Regards.

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