Tax on voluntary contributions

remorseless

hi there,

If I receive a small rental income, can I put that amount as a voluntary contribution to my pension to lower what would have been taxed?

Thanks

atush

You cant put unearned income into a pension.

But you can use the rental income to live on, and put the same into a pension from your employment.

remorseless

atush wrote: »

You cant put unearned income into a pension.

But you can use the rental income to live on, and put the same into a pension from your employment.

Thanks! So for example if I get £100 a month in rent I could increase my current employer contribution for the same amount and use the rental income to subsidise my salary?

atush

in effect, yes.

Up to your allowances of 40K per yr less current contributions or your salary less current contribs whichever is lower.

remorseless

atush wrote: »

Up to your allowances of 40K per yr less current contributions or your salary less current contribs whichever is lower.

Thanks - up to 40K is taxed at 20% right?