Tax relief non working spouses pension

Mistermeaner

Hi my partner doesn't work - she's a stay at home mum (work of a different kind!)

We don't receive child benefit as I earn over the threshold

She has an old work place dc pension , nothing being paid into it at moment

If we were to make payments into her pension would these payments be eligible for tax relief , even though she isn't paying any income tax

?

Thanks

AlanP_2

A non-earned can contribute £2280 net / £3600 gross in to a pension.

MallyGirl

it is 2880

take a look at:

https://forums.moneysavingexpert.com/discussion/5917730/cheapest-sipp-provider-for-non-earner&highlight=2880

Kynthia

I believe you can claim the child benefit NI credits while electing to not receive the child benefit money. Has she done this to ensure she is building up an entitlement to a state pension?

Also it's not your salary figure that determines whether you earn too much for child benefit but your adjusted net income. This is a calculation that takes into account savings interest, and deduct pension contributions. Have you double checked your adjusted net income figure isn't under the limit for child benefit?

Have you claimed the marriage allowance?

She can pay £3600 gross into a pension each year if her relevant earnings are nil or less than this amount.

dunstonh

We don't receive child benefit as I earn over the threshold

How about increasing the pension contributions in your name to bring that figure down? Or are you earning that much over that it wont make a difference?

If we were to make payments into her pension would these payments be eligible for tax relief , even though she isn't paying any income tax

She gets tax relief at basic rate to the non-earner limit as mentioned higher up. Not as good the higher rate relief you get (and the possible reinstatement of child benefit if your contributions are enough)

xylophone

We don't receive child benefit as I earn over the threshold

Had you considered increasing your contributions to your own pension?

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/reduce-high-income-child-benefit-charge/

Your wife is receiving NI credits?

You can choose not to get Child Benefit payments, but you should still fill in the Child Benefit claim form. This will help you get National Insurance credits which count towards your State Pension.

Is your wife's old pension still open to contributions? It is "relief at source"?

If so, she can contribute up to £2880 net and the provider will claim £720 and add it to her pension.

Mnd

If OP is a higher rate tax payer, I don't think marriage allowance is available

Dazed_and_confused

And no one can really "claim" Marriage Allowance.

The person wishing to give up part of their Personal Allowance applies and the other spouse receives it. The other spouse cannot just claim it as that could easily make the other person incur an unexpected and unwanted tax bill.

But as the op is over the limit for HICBC I cannot imagine they would be eligible to receive Marriage Allowance anyhow.