SIPP maximum contribution

dwforum

Having a little trouble understanding definition of terms to clarify the maximum I can put into a SIPP for current tax year.

In current tax year I have £30K of income from employer, and £2K of Jobseekers Allowance. The rules say "maximum of £3,600 or total earned income". Does the JSA count as earned income? (giving £30K plus £2K max for the SIPP?) I know it's *taxable* income, but not sure it's *earned* income? So is the total £30K or £32K?

Also, do I need to knock off the personal allowance from the amount that can be put into the SIPP?

Thanks!

FatherAbraham

dwforum wrote: »

Having a little trouble understanding definition of terms to clarify the maximum I can put into a SIPP for current tax year.

In current tax year I have £30K of income from employer, and £2K of Jobseekers Allowance. The rules say "maximum of £3,600 or total earned income". Does the JSA count as earned income? (giving £30K plus £2K max for the SIPP?) I know it's *taxable* income, but not sure it's *earned* income? So is the total £30K or £32K?

Also, do I need to knock off the personal allowance from the amount that can be put into the SIPP?

Thanks!

For pensions stuff, you'll get more mileage, and more fun, on the pensions discussion board: http://forums.moneysavingexpert.com/forumdisplay.php?f=19

You do not need to remove the personal allowance.

Warmest regards,
FA

kidmugsy

But remember not to write a cheque for £30k: your cheque should be for £24k; the pension company claims back the £6k from HMRC and adds it to your pension pot.

markwilkinson

dwforum wrote: »

Having a little trouble understanding definition of terms to clarify the maximum I can put into a SIPP for current tax year.

In current tax year I have £30K of income from employer, and £2K of Jobseekers Allowance. The rules say "maximum of £3,600 or total earned income". Does the JSA count as earned income? (giving £30K plus £2K max for the SIPP?) I know it's *taxable* income, but not sure it's *earned* income? So is the total £30K or £32K?

Also, do I need to knock off the personal allowance from the amount that can be put into the SIPP?

Thanks!

Hang on, you've earned 30k this year and also received 2k in benefit?

Glad my hard earned taxes are propping you up.

grey_gym_sock

the first bit of JSA after losing a job isn't means-tested.

but i think it was my taxes that want to dwforum. yours went on flood defences - i don't think you're paying enough

dwforum

Thanks FatherAbraham and Kidmugsy for your helpful responses.

To Markwilkinson:

I was made redundant. The JSA I've received while trying to find another job is called *CONTRIBUTION BASED* JSA. It's called that because of some 30 years of Tax and NI contributions I've made.

So it's *my* taxes that are propping me up, not yours.

But don't let the facts get in the way of shooting your mouth off eh?