USS email says Ive gone over my Annual Allowance

AlanP_2

dllive said:

Grumpy_chap said:

.....

Depending how the OP generates and receives the self-employed income, this may or may not qualify as earned income against which pension contributions can be made.  If that "self-employed" income is from non-trading activity or via a Ltd Co (rather than sole-trader), the earnings may not all qualify for pension contribution limits.
....

Just to clarify: My income is from employment, and self-employment as a sole trader. I also earn a little from a property rental. Is the rent counted as 'earned income' which counts towards pension contribution limits? I presume so because I pay tax on it(?). 

Rental income doesn't count from a pension perspective.

Dazed_and_C0nfused

dllive said:

Grumpy_chap said:

.....

Depending how the OP generates and receives the self-employed income, this may or may not qualify as earned income against which pension contributions can be made.  If that "self-employed" income is from non-trading activity or via a Ltd Co (rather than sole-trader), the earnings may not all qualify for pension contribution limits.
....

Just to clarify: My income is from employment, and self-employment as a sole trader. I also earn a little from a property rental. Is the rent counted as 'earned income' which counts towards pension contribution limits? I presume so because I pay tax on it(?). 

No, it's not.

You can pay tax on lots of different income types, interest, pensions, dividends for example but none of those are relevant earnings for pension contribution purposes either.

AlanP_2

dllive said:

Simes122 said:

If you are paying in £3k a month AVCs, and 9.8% standard, you are taking yourself well under the minimum wage on the Uni side.  This isn't allowable - you might have escaped your Payroll's attention for now, but the Uni could be breaking the law if you are not reaching minimum wage per hour.    You'll have exceeded the annual allowance because you are contributing £36k in AVCs, and your DB side will probably be calculated to be worth much more than the £4k it's cost you.  (it's a complicated calculation).   It'll also be for when the AA was £40k - it's risen to £60k now, but you'll need to carefully assess how much Carry Forward you have consumed when you get your pension statement from USS.

I was watching the 'Focus on Pensions Tax' video yesterday (near the bottom of this page https://www.uss.co.uk/for-members/guidance-and-financial-advice/guidance-webinars ) . She says you can contribute up to 100% of your salary into USS at the 4:15 mark. So Im taking this (maybe wrongly?) that I can be paid less than minimum wage?

On my annual statement Ive found the PIA amounts. This has been about £10k in each of the past 3 years.

So, as I understand it, to calculate how much Ive exceeded my AA, I add my PIA + AVCs + contributions (gross) to my SIPP. Is that right?

Thanks

It may be more beneficial to find out whether your AVCs could be "salary exchange" as well as your main contributions?

I thought your pension statement said you had exceeded AA last year and the reason you proposed was AVC contributions.

If that is correct the PIA is including the AVC contributions already.

Dazed_and_C0nfused

She says you can contribute up to 100% of your salary into USS at the 4:15 mark. So Im taking this (maybe wrongly?) that I can be paid less than minimum wage?

You are likely mixing up two different rules.

I think NMW only applies where salary sacrifice is in place, if you are contributing it won't be salary sacrifice.

And even if you do use salary sacrifice you can still make separate RAS contributions.

LHW99

AlanP_2 said:

dllive said:

Grumpy_chap said:

.....

Depending how the OP generates and receives the self-employed income, this may or may not qualify as earned income against which pension contributions can be made.  If that "self-employed" income is from non-trading activity or via a Ltd Co (rather than sole-trader), the earnings may not all qualify for pension contribution limits.
....

Just to clarify: My income is from employment, and self-employment as a sole trader. I also earn a little from a property rental. Is the rent counted as 'earned income' which counts towards pension contribution limits? I presume so because I pay tax on it(?). 

Rental income doesn't count from a pension perspective.

Unless it is from a furnished holiday let, which does