Does taxable benefit in P11D count towards total earning limit for pension contribution?

qsk

I thought the P60 gave the total earnings for the tax year. I was also advised here that taxable benefit counts towards to the total earning limit for pension contribution. 
I might miss it but I found from my calculation that the taxable benefit (private medical insurance in my case) is not included in P60 (or salary slips) but listed in a different P11D form. Does it still count towards the total earning limit for pension contribution in this case?

lisyloo

What do you mean by the "total earning limit for pension contributions".
If you'[re talking about minimum wage legislation then the answer is no.
Can you explain what limit you are referring to?

qsk

lisyloo said:

What do you mean by the "total earning limit for pension contributions".
If you'[re talking about minimum wage legislation then the answer is no.
Can you explain what limit you are referring to?

Sorry I didn't make myself clear. I understand that you cannot contribute more than your total earning of the tax year to benefit from the tax relief. I am just wondering if the taxable benefit listed in P11D (but not in P60) counts towards to this total earning.

BoGoF

Gut reaction was no, but with the mandation of payrolling benefits in kind from April 2026 I'm not so sure as it will then be included in P60 figure.

Marcon

qsk said:

lisyloo said:

What do you mean by the "total earning limit for pension contributions".
If you'[re talking about minimum wage legislation then the answer is no.
Can you explain what limit you are referring to?

Sorry I didn't make myself clear. I understand that you cannot contribute more than your total earning of the tax year to benefit from the tax relief. I am just wondering if the taxable benefit listed in P11D (but not in P60) counts towards to this total earning.

Yes it does. See https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100#qualifying and scroll down to 'Earnings that attract tax relief'.

BoGoF said:

Gut reaction was no, but with the mandation of payrolling benefits in kind from April 2026 I'm not so sure as it will then be included in P60 figure.

Just to clarify that until then P11D benefits can be in addition to P60 benefits and thus eligible to be counted as 'relevant earnings'.

MetaPhysical

Yes.  P11D number gets added to your relevant earnings.  This can push you over certain thresholds so you need to be careful if it would reduce your entitlements.

qsk

Thanks all for the kind replies.
One further question, my understanding is that P11D does not get submitted until May/June time. Will HMRC reject the tax relief if the application is sumitted in April?

Dazed_and_C0nfused

qsk said:

Thanks all for the kind replies.
One further question, my understanding is that P11D does not get submitted until May/June time. Will HMRC reject the tax relief if the application is sumitted in April?

If you are making a relief at source contribution then no, you are responsible for only paying a qualifying contribution and the pension company will automatically add the 25%.