Does overtime count towards yearly pension contributions?

maz_hartley

I believe 100% of hour earnings count towards the total you can contribute to a pension But can anyone clarify as I’m not very well clued up if overtime counts towards the total you can contribute. Say for example your basic earnings were 18k and with overtime 22k so I’m guessing that 22k is the max you can pension you can  contribute for the year including what you already contribute to a pension with tax relief. So I’m assuming overtime is included but unsure, but can anyone clarify?

MallyGirl

I can't see why it wouldn't as it will be part of the gross income figure - can't be certain as it is a long time since I got paid overtime 

Thrugelmir

Earnings are earnings. Whether it's basic, overtime, shift allowance, commission bonus, etc etc. 

Dazed_and_C0nfused

The amount you can contribute is limited by pensionable/relevant earnings and there is no difference between normal pay and overtime in this respect.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/tax-relief-members-contributions/

If there was a difference I don't know how HMRC would police it as employers are not required to notify HMRC of overtime as an individual amount.

eastcorkram

Only speaking for my own situation, but overtime is definitely NOT included in either mine or the employer's figures. I earn, on average, probably £120 to £200 per week in overtime. The pension contributions are a percentage of my basic pay. Currently 5% from employer, and 18% from me. The amount is the same every week, whether I work 40 hours or 50.

Dazed_and_C0nfused

I think you are confusing options with auto enrolment and what can be counted.

jamesd

Yes, overtime and bonus count. You're allowed to pay in too much and ask for a "refund of excess contributions" lump sum if you have to estimate what the final amount will be, it's just routine.

eastcorkram, that's what an employer and you pay into the work scheme but the question being asked was how much you're allowed to pay in and still get tax relief, which is your whole gross pay.