Annual pension contribution

doofla

Sorry, I know this is a basic question, but is the £50,000 annual limit for pension contributions the amount I can pay in, and then I get tax relief on top by the government paying more on top, or is that the gross amount i.e. I have to work out the additional tax relief that the government would add on and the total amount would have to add up to £50,000?
Thanks!

jem16

doofla wrote: »

Sorry, I know this is a basic question, but is the £50,000 annual limit for pension contributions the amount I can pay in, and then I get tax relief on top by the government paying more on top, or is that the gross amount i.e. I have to work out the additional tax relief that the government would add on and the total amount would have to add up to £50,000?
Thanks!

£50,000 is the gross amount. So you would have to pay in a £40,000 contribution ( ie net of basic rate tax).

If you are entitled to higher rate tax relief you would then claim that extra 20% from HMRC and it would be repaid to you by cheque or by a reduction in the tax that you owe.