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Inadvertently triggered MPAA

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Comments

  • Malthusian
    Malthusian Posts: 11,055 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    I have increased my pension contributions and am also getting increased employer contributions. I am planning  on working for at least another 5 years and yes, was hoping to ramp up my contributions significantly after daughter leaves uni. 
    By?
    If you can show that "I am likely to earn X over the next five years, and I would contribute Y to my pension, but doing so would now exceed the MPAA by £Z, which means I have lost out on tax relief of Z * 20% (assuming basic rate tax)", and those assumptions can be shown to be reasonable rather than an attempt to maximise compensation, that may be a good way to show a financial loss.
    (Alternatively, as discussed on page 1, if employer matching contributions are available and it makes sense to pay contributions despite the MPAA, then your loss is whatever your Annual Allowance tax charge is.)
    The maths part is easy, the hard part is working out what is a reasonable claim as to how much your earnings and your pension contributions would increase once your daughter leaves uni. I'm not sure paying a professional will help much with that side.
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