Pension tax relief question

enator

I thought you could only use earned income for pension tax relief, so he can only calculate on the £43k earned and not the extra £13k??

berbatov10

Just when I thought I was getting my head round it.... So with my £11807 which is the amount I think we all agree is the amount taxable at 40% in my case (with my PA being £12353) what is the best I can do with it?

jem16

enator wrote: »

I thought you could only use earned income for pension tax relief, so he can only calculate on the £43k earned and not the extra £13k??

He can use this as total income for tax relief purposes as he has plenty of earned income to allow the tax relief on.

berbatov10

jem16 wrote: »

He can use this as total income for tax relief purposes as he has plenty of earned income to allow the tax relief on.

So Jem I can put in the whole £11,807 and get 40% tax relief ??

PensionTech

No.

You can put in £9,445.60.

The amount credited to your pension will be £11,807.

After you get the rest of the tax back from HMRC the eventual cost to you will work out at £7,084.20.

berbatov10

Oh okay I thought, mistakenly, that I could put the whole amount in, thanks

berbatov10

At the risk of pushing my luck I have another question. I have read that I can 'count back' unused allowance over last 3 years up to my annual earnings for this tax year. How is that claimed via provider and on SA tax return?

jem16

berbatov10 wrote: »

Oh okay I thought, mistakenly, that I could put the whole amount in, thanks

Well I did actually give you the figure about 3 times but glad you've got it now.

berbatov10 wrote: »

At the risk of pushing my luck I have another question. I have read that I can 'count back' unused allowance over last 3 years up to my annual earnings for this tax year. How is that claimed via provider and on SA tax return?

You just make the contribution and claim tax relief as normal. Suggest you read this.

http://www.hmrc.gov.uk/manuals/ptmanual/ptm056200.htm

berbatov10

Thanks Jem