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Bit confused by the income versus contribution rules
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Hi & thx. Yes I get that now.TVAS said:Please understand the difference between earned income which means you have to work to get the money and unearned income rent from a property. If you are in a wheelchair you would still get rental income so this is deemed to be unearned income because you do not have to work to get it.
Pension contributions are based on earned income only.
I'ld always understood the distinction between earned income and 'investment' income (though anyone who actually thinks having 30 odd student beds isn't work is deluded).
BUT
previously had thought the link was between pension contributions and taxable income
now I see there is a stronger link between pension contributions and earned income
All good stuff to know (and another reason to put investment property in a Ltd Co wrapper)
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