Kids pension overpayment query

funnymonkey

Good afternoon.
Can anyone please help me as I have paid into my child's pension the maximum limit allowed and the government will top.up by 20% in due course.
Can anyone please tell me if I can add any extra or do I have to wait for the next tax year or would the government just not add and more?
Thank you

Dox

No limit to the amount you can pay in - the pension just won't get any further 'top up' in this tax year. You need to make sure the pension provider knows if you choose to do this.

dunstonh

In the majority of cases, there is absolutely no reason to exceed the earnings limit (in this case £3600). It is just wasteful and alternative options may be better with any excess.

Malthusian

To expand on the above, it is a complete waste to make pension contributions for your child if you aren't getting tax relief, because chances are that the child will (in many years' time) pay tax to get it out. It would be easier to just make a voluntary tax payment of 20% of the money to HMRC and invest the other 80% in your own name or a Junior ISA.

Assuming you aren't looking to pay voluntary tax, it would almost certainly be better to put all the money in your own name and earmark it, or use a Junior ISA, depending on how much control you want to retain.

xylophone

Does the child have a CTF/JISA?