Can i increase my pension payments?

Only working 15hrs/week PAYE- i contribute £36 (5%) government £9, we (I guess company) contribute £27 (£3%) so total £73.  Can I increase the contributions?

Comments

  • eskbanker
    eskbanker Posts: 30,737 Forumite
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    You'd have to ask your employer if their scheme allows higher employee contributions (and, perhaps more importantly, if they match them) but if not there's nothing to stop you paying into a private pension of your own.

    Just to be clear, are you earning £730 a week (£48.67/hr) or are those deductions based on monthly pay at nearer minimum wage?
  • textbook
    textbook Posts: 574 Forumite
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    eskbanker said:
    You'd have to ask your employer if their scheme allows higher employee contributions (and, perhaps more importantly, if they match them) but if not there's nothing to stop you paying into a private pension of your own.

    Just to be clear, are you earning £730 a week (£48.67/hr) or are those deductions based on monthly pay at nearer minimum wage?
    £15/hr for 15hrs a week and receive salalry every two weeks
  • jamesd
    jamesd Posts: 26,103 Forumite
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    Find out if it's a salary sacrifice scheme. If it is you should only pay in by work the amount that gets work contributions because you will receive no tax relief. This is because your income in this job is below the income tax personal allowance.

    If it is a relief at source scheme that's perfect for you and you can increase as much as work will let you. You can also make total work and personal contributions that after tax relief go no higher than your total annual pay for the year.

    There may be a relief at source way to pay in to a work salary sacrifice scheme and you would get tax relief that way.
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 13,347 Forumite
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    edited 20 January at 10:53PM
    jamesd said:
    Find out if it's a salary sacrifice scheme. If it is you should only pay in by work the amount that gets work contributions because you will receive no tax relief. This is because your income in this job is below the income tax personal allowance.

    If it is a relief at source scheme that's perfect for you and you can increase as much as work will let you. You can also make total work and personal contributions that after tax relief go no higher than your total annual pay for the year.

    There may be a relief at source way to pay in to a work salary sacrifice scheme and you would get tax relief that way.
    That may be correct for the op but if they have other taxable income (and the type of income will be important) then they could already be receiving the normal tax avoidance benefit from salary sacrifice into the pension.
  • jamesd
    jamesd Posts: 26,103 Forumite
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    Salary sacrifice reduces the pre-tax pay and if there is no tax being deducted no tax relief happens. It is possible for a person to have so much extra income that a lower than usual tax code has been issued and in that case there could be some tax relief.
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 13,347 Forumite
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    jamesd said:
    Salary sacrifice reduces the pre-tax pay and if there is no tax being deducted no tax relief happens. It is possible for a person to have so much extra income that a lower than usual tax code has been issued and in that case there could be some tax relief.
    The tax code really isn't relevant.  You could have someone earning £10k and sacrificing £2k with tax code 1257L. 

    It appears no benefit/tax relief is being received but say that person is receiving rental income of £10k.  

    Instead of having £2,570 unused Personal Allowance available against the rental income the sacrifice means they have £4,570 available so the sacrifice has still saved them £400 in tax overall.

  • jamesd
    jamesd Posts: 26,103 Forumite
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    Yes, that's entirely possible, with the benefit ending up in their bank account instead of their pension.

    No way to get an NI saving that way, though, with earnings in the job below the £12,570 primary earnings threshold.
  • textbook
    textbook Posts: 574 Forumite
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    They said I can increase my payments but they won't increase their contributions from 3%.   People were discussing tax relief.   I have a self employed job as well as this PAYE job so would be close to payin tax.
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