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Definition of 'non earner'
Bellabee
Posts: 20 Forumite
I am considering making a contribution to a SIPP, for tax relief purposes but I'm unsure as to whether I am classified as a 'non earner.'
I am aged 60 and retired from employment. In addition to my private pension, I have net rental income of around £11,000 pa. Can anyone tell me whether the rental income would be classified as 'earnings,' or as 'investment income?' I'm suspecting it may be the latter, as I don't pay NI contributions, although I do pay tax.
I'm thinking that it would be well worth my while, if I could benefit from making a £10,000 contribution into a SIPP. However, I suspect that the maximum tax-free contribution I could make may be £3,600.
Please can anyone enlighten me?
Many thanks
I am aged 60 and retired from employment. In addition to my private pension, I have net rental income of around £11,000 pa. Can anyone tell me whether the rental income would be classified as 'earnings,' or as 'investment income?' I'm suspecting it may be the latter, as I don't pay NI contributions, although I do pay tax.
I'm thinking that it would be well worth my while, if I could benefit from making a £10,000 contribution into a SIPP. However, I suspect that the maximum tax-free contribution I could make may be £3,600.
Please can anyone enlighten me?
Many thanks
0
Comments
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You have no "earned income". This doesnt include rental or investment income.
This limits you to the £3.600 gross pension contributions which limits you to £2,880 actual payments.0
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