Can non-taxpayer contribute more than £2880?

molerat

MrBadger1969 said:

molerat said:

Hi everyone. I'm wanting to understand more about non taxpayers contributing £2880 (or more) to a SIPP

Don't confuse non taxpayers and non earners.  A non earner can contribute £3600 gross, £2880 net.  A non tax payer may be able to contribute £10056 net, topped up to £12570 gross with £2514 tax relief, if they were earning £12570 even though they would not be paying any tax.

@molerat - you are quite right of course. My sloppy language. I meant the latter. 

A lot of people do believe that non tax payers can only contribute the £2880 so just clarifying.

Dazed_and_C0nfused

molerat said:

MrBadger1969 said:

molerat said:

Hi everyone. I'm wanting to understand more about non taxpayers contributing £2880 (or more) to a SIPP

Don't confuse non taxpayers and non earners.  A non earner can contribute £3600 gross, £2880 net.  A non tax payer may be able to contribute £10056 net, topped up to £12570 gross with £2514 tax relief, if they were earning £12570 even though they would not be paying any tax.

@molerat - you are quite right of course. My sloppy language. I meant the latter. 

A lot of people do believe that non tax payers can only contribute the £2880 so just clarifying.

Gov.uk doesn't help mind with things like this,

If you do not pay Income Tax

You still automatically get tax relief at 20% on the first £2,880 you pay into a pension each tax year (6 April to 5 April) if both of the following apply to you:

you do not pay Income Tax, for example because you’re on a low income

your pension provider claims tax relief for you at a rate of 20% (relief at source)

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief