Ed Vernon-Harcourt
-
RE: Pension Contributions Confusion
Thanks. I have read that but it is not seam to explicitly answer my questions. -
Pension Contributions Confusion
Hi, I am trying to determine the maximum contributions I can make to my pension in this tax year and I am not 100% clear how the limit is calculated. I earn over £100k (but less then £200k) so I pay enough of my pay at 40% to get further tax relief from my pension on my tax return. My comany pension scheme adds tax relief at the basic rate to my employee payments as it is paid into L&G pension fund. My employer contributes £22,886/year How do I calculate the maximum I can pay into my pension each year? I want the figure that I ask to be deducted from my salary each year. I know the limit is £60k/yr but the two areas I am not clear on are; 1. Are employer contributions included in this £60k limit? 2. Does the £60k limit get calculated against the amount deducted from my salary or the salary deduction +20% or salary deduction +40%? Thanks Ed