HMRC do not pay tax relief on any carry forward contributions?

eyeonretirement

Thanks, that cleared a lot up, I now understand gross and net when it comes to pensions

For the purposes of the annual allowance your pension input would be £47k, but you have plenty of allowance available to carry forwards by the looks of it so it's OK as a one off.

For the purposes of the "100% of earnings" limit - employer contributions don't count (all sal sac contributions are technically employer contributions - you sacrifice the salary and the employer pays into the pension). So your limit is your taxable earnings - ie £41k by the sounds of it.

So if my limit is the 41,000, why is my platform saying if I pay in 32800 they cannot claim tax relief of 20% to make it up to 41,000?

I know I'm being dumb, I just cannot get me head around this

coyrls

eyeonretirement wrote: »

Thanks, that cleared a lot up, I now understand gross and net when it comes to pensions



So if my limit is the 41,000, why is my platform saying if I pay in 32800 they cannot claim tax relief of 20% to make it up to 41,000?

I know I'm being dumb, I just cannot get me head around this

As I've said above, I can't understand why they are saying this, it doesn't make sense to me either.

zagfles

eyeonretirement wrote: »

Thanks, that cleared a lot up, I now understand gross and net when it comes to pensions



So if my limit is the 41,000, why is my platform saying if I pay in 32800 they cannot claim tax relief of 20% to make it up to 41,000?

I know I'm being dumb, I just cannot get me head around this

It sounds like whoever you were talking to at the platform doesn't know what they're talking about. Or there's cross wires. As long at you don't exceed the "100% of earnings" limit the platform can claim tax relief.

The AA doesn't affect their ability to claim tax relief - even if you were to exceed the AA with carry forwards you'd have to pay tax direct to HMRC. The platform would still claim tax relief as normal.