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Relevant Earnings for Pension Contributions
bhun
Posts: 7 Forumite
I've asked this on the Benefits Forum and was advised to also post here to see if anyone knows the answer.
I claim contribution-based ESA and also have a part-time job. I want to know if the contribution-based ESA income counts as relevant earnings in terms of how much I can pay into my private pension and still get tax relief. At the moment I just pay into my pension up to the amount I receive from my job so that I am sure I get the tax relief payment top-ups.
Can't find anything on the internet that answers this.
I claim contribution-based ESA and also have a part-time job. I want to know if the contribution-based ESA income counts as relevant earnings in terms of how much I can pay into my private pension and still get tax relief. At the moment I just pay into my pension up to the amount I receive from my job so that I am sure I get the tax relief payment top-ups.
Can't find anything on the internet that answers this.
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Comments
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Benefits do not count as earnings for pension contributions. "Earnings" must be from employment.1
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Thank you.0
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From your link, I think it is worth pointing out:
'Relevant UK earnings means any one or more of the following types of income:- benefits in kind which are taxable (applies to employees earning over £8,500, and to directors)'
From the gov.uk website:'Working while you claim
You can usually work while you are claiming ESA if both of the following apply:
- you work less than 16 hours a week
- you do not earn more than £167 a week'
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BIK are things like a company car or medical insurance, not DWP benefit related.1
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Ah, sorry. Thanks for the clarification.0
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At the moment I just pay into my pension up to the amount I receive from my job so that I am sure I get the tax relief payment top-ups.Just picking up on that point. It may be your wording but the pension contribution should be no higher than your earnings. That means including the tax relief. The tax relief is not on top.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Yeah, my wording. I contribute up to my earnings, including the added tax relief.dunstonh said:At the moment I just pay into my pension up to the amount I receive from my job so that I am sure I get the tax relief payment top-ups.Just picking up on that point. It may be your wording but the pension contribution should be no higher than your earnings. That means including the tax relief. The tax relief is not on top.0
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