Paying into SPP while not working

Dazed_and_confused

Doesn't "salary" of £30k and salary sacrifice of £15k actually result in real salary of £15k and therefore only £15k (gross including tax relief) could be paid into a personal pension?

HappyHarry

Dazed_and_confused wrote: »

Doesn't "salary" of £30k and salary sacrifice of £15k actually result in real salary of £15k and therefore only £15k (gross including tax relief) could be paid into a personal pension?

Good point. Yes, of course it does!

I'll edit my post above.

Thank you.

honest_john

HappyHarry wrote: »

It sounds like you were in a salary sacrifice scheme.

This is where your employer reduces your pay, and in return, makes a larger contribution to your pension. This is very tax efficient, and saves on National Insurance Contributions.

The good news for you is that this type of contribution is not counted as a personal contribution, rather, it only counts as an employer contribution

As far as your pension is concerned, this means that you have made no contributions this tax year, and have the full £10,450.04 that you can still contribute.

Thanks again for explaining everything simply for my little brain:)
I wish i was more aware of how the scheme worked while i was employed as i would have made personal contributions to top up my pension, instead of it sitting in low interest accounts.


Just one last question if thats ok, if i make a one off payment into the pension up to this years maximum who checks the amount is valid, is it down to me to calculate it correctly, is it the pension provider or HMRC?
I guess i could just enter the amount online and see if its accepted.
Thanks again.

:beer: