Pension contributions

Scallypud

I recently started taking my personal pension a few months ago. Just after i started this i went back to work.
My question is that i have earned £8K and would like to invest £6K in to my pension. Is there anything stopping me doing so?  

Marcon

Scallypud said:

I recently started taking my personal pension a few months ago. Just after i started this i went back to work.
My question is that i have earned £8K and would like to invest £6K in to my pension. Is there anything stopping me doing so?  

Even if you've triggered the MPAA you can still pay in £10K per tax year (including any tax relief on your contributions, + any employer contributions), so unless you have other contributions in this tax year which would exceed that limit, then it's fine and you'll get the usual tax relief on your personal contributions.

Scallypud

I thought once you've triggered MPAA you could only invest £2,880 or am i getting mixed up with something else 

Dazed_and_C0nfused

Scallypud said:

I thought once you've triggered MPAA you could only invest £2,880 or am i getting mixed up with something else 

That was the old (net) figure.

From 2923-24 the limit is £10,000 (gross).

Albermarle

Scallypud said:

I thought once you've triggered MPAA you could only invest £2,880 or am i getting mixed up with something else 

That is how much you can pay in if you have no earnings at all.

zagfles

Scallypud said:

I thought once you've triggered MPAA you could only invest £2,880 or am i getting mixed up with something else 

That's the (net) tax relief limit for non earners, or people who earn under £3600, not the MPAA.

The MPAA is £10,000 gross this year, last year it was £4000

zagfles

Scallypud said:

I recently started taking my personal pension a few months ago. Just after i started this i went back to work.
My question is that i have earned £8K and would like to invest £6K in to my pension. Is there anything stopping me doing so?  

You're probably OK but 3 things to watch out for, which are all completely separate issues:

1) MPAA. You might have triggered the MPAA, but even if you have you're within the limit unless very generous employer conts. Employer conts count towards the MPAA. But if you earn more and want to contribute more it might be an issue. Google MPAA triggers for more info.

2) Tax relief limit. OK here as well, earning £8k, so can contribute £8k gross ie £6.4k net. Need to account for any contributions you make to the workplace scheme, so if you contribute eg £500 gross then you can only put in £7.5k gross ie £6k net. Employer conts don't count for this

3) Recycling rules. If you took a tax free lump sum when you took the pension, google HMRC recycling rules

Scallypud

Dazed_and_C0nfused said:

Scallypud said:

I thought once you've triggered MPAA you could only invest £2,880 or am i getting mixed up with something else 

That was the old (net) figure.

From 2923-24 the limit is £10,000 (gross).

I don't think i will live that long

Brie

It would have to be a new/different pension I believe to the one you are receiving.  Not sure if that's what you meant or not.