Voluntary redundancy and retirement

zagfles

atush wrote: »

but the previous years are 36K? So they will only be able to get the extra allowance on that income?

Not this again! The annual allowance is £40k, even if your income is less. It includes employer contributions. It can be carried forwards. Until last year it used "pension input periods".

But there is another limit, the tax relief limit - 100% or earnings or £3600. This applies to employee/personal contributions only, not employer, it can't be carried forwards. It uses tax years and always has.

The two are completely separate limits with completely different rules and should not be confused, nor combined in the sort of simplistic drivel you see in the media like "pension contributions are limited to 100% of income subject to £3600 min and £40k max".