We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Quick Allowance clarification.....

Can I please just check something that I did have clear  with regards AA/Earnings but am now just wanting to check....

For 2020/21:

Taxable Pay/Earnings will be £12k (rounded for ease)

Salary Sacrificed Pension contributions for 2020/21 are £5k (rounded for ease)

Personal Scheme Contributions Gross will be £3,750


Remaining “allowance” for Personal contributions is £8,250 Gross which would give total Personal, Salary Sacrificed and Employer contributions of £17k for 2020/21. No issues with taxable earnings of £12k as £5k was SS.


MTIA.


Comments

  • AlanP_2
    AlanP_2 Posts: 3,559 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 9 February 2021 at 6:15PM
    You can contribute up to your salary level so £12,000 - £3750 = £8250 Gross. Employer contributions (including your SS portion) are irrelevant.

    Was the £3750 Gross or Nett? You need to use the Gross figure.
  • Thanks - yes will be £3,750 Gross so £6,600 Nett remaining made up through RAS to £8,250 Gross.
    For some reason I was starting to question the SS element !
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.2K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.2K Work, Benefits & Business
  • 603.9K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.