How much can my wife put in to her pension?

Zolablue

Albermarle said:

Zolablue said:

Albermarle said:

So she should calculate how much she is contributing via her workplace scheme, including tax relief.
Subtract this from £11,000 and that is how much more she can contribute gross ( including tax relief)

So as an example if she has £10,000 gross to contribute she needs to add £8,000 and £2,000 tax relief will be added.

Ah, I was in the middle of posting my last post so didn't see this come in first. Therefore my understanding was wrong

So the total going in to her pension pots (once the tax relief is added) can't be more than her actual take home pay. salary  She can only pay in 80% of her take home pay salary.

. It does not matter whether she has ten pensions or one, she can not pay in more than her gross salary in total.
Her take home pay is not relevant to the calculation.

Sorry, yes, I realise I was using the wrong term with take home pay.

I guess it isn't so much that SHE can't pay in more than her gross salary as much as she can't have more than her gross salary paid in to her pension pots (as she doesn't actually pay in the tax relief - but it still counts)

That's not me being pedantic, it's me trying to get it straight in my head (sorry if it sound pedantic- not my intention)

Albermarle

Zolablue said:

Albermarle said:

Zolablue said:

Albermarle said:

So she should calculate how much she is contributing via her workplace scheme, including tax relief.
Subtract this from £11,000 and that is how much more she can contribute gross ( including tax relief)

So as an example if she has £10,000 gross to contribute she needs to add £8,000 and £2,000 tax relief will be added.

Ah, I was in the middle of posting my last post so didn't see this come in first. Therefore my understanding was wrong

So the total going in to her pension pots (once the tax relief is added) can't be more than her actual take home pay. salary  She can only pay in 80% of her take home pay salary.

. It does not matter whether she has ten pensions or one, she can not pay in more than her gross salary in total.
Her take home pay is not relevant to the calculation.

Sorry, yes, I realise I was using the wrong term with take home pay.

I guess it isn't so much that SHE can't pay in more than her gross salary as much as she can't have more than her gross salary paid in to her pension pots (as she doesn't actually pay in the tax relief - but it still counts)

That's not me being pedantic, it's me trying to get it straight in my head (sorry if it sound pedantic- not my intention)

Yes except the employers contributions can go in as well as a separate item . Some employers pay only 3%, some more than 10%, but it does not affect how much she can pay in herself. If she was a higher earner other rules come into play, but that is not relevant in this case .

Dazed_and_C0nfused

My wife works part time and earns, roughly, £11,000 a year. This is, obviously, below the threshold for paying income tax. 

Separate to the pension contribution aspect has your wife considered applying for Marriage Allowance?

Her income would mean she could likely do this without incurring any tax liability, or at worst a very small one.  It wouldn't have any impact on what she could contribute to a relief at source pension.

Zolablue

Dazed_and_C0nfused said:

My wife works part time and earns, roughly, £11,000 a year. This is, obviously, below the threshold for paying income tax. 

Separate to the pension contribution aspect has your wife considered applying for Marriage Allowance?

Her income would mean she could likely do this without incurring any tax liability, or at worst a very small one.  It wouldn't have any impact on what she could contribute to a relief at source pension.

Are you referring to where she can "transfer" £1000 of her tax allowance to me? If so, then yes, we did that a few years ago.

Dazed_and_C0nfused

It's 10% of her Personal Allowance, not £1,000 but yes it's no doubt the same thing.

Zolablue

Sorry to come back to this but I have another query that has popped into my head on this.

Does income from savings interest count towards the maximum she can pay in or is it only income from employment that counts?

Not sure whether the question makes sense but I hope that it does!

Thanks 

Dazed_and_C0nfused

No, it doesn't count for pension contribution purposes.