Contributing previous years check

NoMore

Nearly there, you would only add 20k to the pension, then the pension would claim basic tax relief to bring it to 25k.

So you would have 50k in pension, 25k by salary sacrifice and 25k by a relief at source contribution (20k + 5k tax relief) 

Sarahspangles

mark_cycling00 said:

So sticking with the £50k employment salary example (no savings income etc)

If I salary sacrifice about £25k about when minimum wage limit might kick in, this gets added to the pension prior to tax and NI being taken off.

I can still add another £25k in the same year via my own personal payment and would get 25% added by pension provider as tax relief?

The £60k annual limit is meaningless due to salary only being £50k

Hope I've got this aspect correct. Thanks 

Close but no cigar.

In your example, your taxable pay is now £25k. You can contribute £25k to your pension but that’s including the tax relief. So you contribute £20k and the taxman tops up with £5k. You have £5k you can’t contribute.

Linton

mark_cycling00 said:

So sticking with the £50k employment salary example (no savings income etc)

If I salary sacrifice about £25k about when minimum wage limit might kick in, this gets added to the pension prior to tax and NI being taken off.

I can still add another £25k in the same year via my own personal payment and would get 25% added by pension provider as tax relief?

The £60k annual limit is meaningless due to salary only being £50k

Hope I've got this aspect correct. Thanks 

Not correct.  The extra £25K paid into a persnal pension is the net contribution. The limits are calculated in terms of the gross.  This means that you pay £20K into your personal pension.  This is increased by 25% by the pension provider to give you the maximum of £25K gross.

mark_cycling00

Haha. Nearly there but thanks all for correcting the final aspect of this.