Pension limits £3600 tax free

Sammyh37

I am currently employed and have been for the last 12 years. I currently put £175 into a company final salary pension. I want to put more into my pension but I cannot add to this pension. So I am going to put £100 away into a money purchase pension with aviva. I am confused about the tax benefits, and wondering am I then putting to much to be tax affective £275*12=£3300. Does the £175 from my company pension count towards this figure. Isn't the most you can put in £2880 which is tax relief from your gross salary ?
Any advice would be great

marlot

You don't say how much you earn, but as a general rule if you are a UK resident taxpayer under the age of 75, you can contribute as much as you earn each year to your pensions, up to the annual allowance of £40,000.

[STRIKE]If you are not earning enough to pay income tax, you can still receive tax relief on pension contributions up to a maximum of £3,600 a year.[/STRIKE]

It is possible to pay in more than £40,000 a year by carrying forward any unused allowance from the previous three years.

Dazed_and_confused

If you are not earning enough to pay income tax, you can still receive tax relief on pension contributions up to a maximum of £3,600 a year.

For some people this could be a maximum (gross) contribution of £11,850 in the current tax year.

xylophone

If you are not earning enough to pay income tax, you can still receive tax relief on pension contributions up to a maximum of £3,600 a year.

Your only income could be your salary (relevant earnings) of £11850 per tax year so that you would not pay tax.


If under 75 you could contribute up to £9480 to a personal pension and the provider would claim tax relief up to £2370 and add it to your pension.

If you have no relevant earnings( or relevant earnings less than £3600), you can (if under 75) contribute up to £2880 to a personal pension and receive tax relief of up to £720.

Paul_Herring

Isn't the most you can put in £2880 which is tax relief from your gross salary ?

I think you may be confusing limits.

The £3,600 figure is the gross amount per year someone not earning anything (or up to that amount) can contribute to a DC pension (paying 80% of that in - £2,880- and getting tax relief to bump it up to £3,600,) which I'm going to assume doesn't actually apply to you.

If you're earning more than that, you can contribute more; up to 80% of whatever your gross earnings are (until you hit £40¸000 when other rules apply) and getting tax relief to bump it up to whatever your gross earnings are.

Mnd

You need to let us know how much you earn