Pension Options Help

I have only in the past 5 years started paying into a work pension who contribute 4 % aswell as my 4 %. 
I am a basic rate tax payer earning around £18-20K per year. 
We have no debt due to mortgage paid and received an inheritance the last few years which has been placed in ISA and PB and the rest in fixed rate accounts therefore paying tax on interest from the interest accounts.

My pension company said i cant pay extra from the last 3 years as i havent paid in enough. 

They say i can add up to £60k per tax year now going forward along with any salary sacrifice ?

Is this correct as there seems to be conflicting advice from them?

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Comments

  • eskbanker
    eskbanker Posts: 36,747 Forumite
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    Your annual gross contributions to your pension are capped by your annual salary.
  • eskbanker said:
    Your annual gross contributions to your pension are capped by your annual salary.
    Thats what i got told last week and then today someone from pension company said you are allowed to invest up to 60K annual allowance.
  • RJ23 said:
    eskbanker said:
    Your annual gross contributions to your pension are capped by your annual salary.
    Thats what i got told last week and then today someone from pension company said you are allowed to invest up to 60K annual allowance.
    You are, if you have sufficient earnings.
  • Linton
    Linton Posts: 18,105 Forumite
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    One error or lack of clarity - the £60K+rollover limit includes employer contributions and salary sacrifice. It is not an extra you can contribute.

  • Linton said:
    One error or lack of clarity - the £60K+rollover limit includes employer contributions and salary sacrifice. It is not an extra you can contribute.

    What about if you run a private pension separate to your company one ?
  • Hi - how old are you now and how much are you hoping to move into pension (from ISAs or other funds)?

    You mention 'we' - are you married? If so how much does your spouse earn and how much do they pay into pensions?
  • Linton
    Linton Posts: 18,105 Forumite
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    RJ23 said:
    Linton said:
    One error or lack of clarity - the £60K+rollover limit includes employer contributions and salary sacrifice. It is not an extra you can contribute.

    What about if you run a private pension separate to your company one ?
    It makes no difference. The earnings personal contribution and £60k  total contribution limits apply across all your pensions. The pension companies will inform  HMRC of the contributions and they will police the rules.
  • RJ23 said:
    Linton said:
    One error or lack of clarity - the £60K+rollover limit includes employer contributions and salary sacrifice. It is not an extra you can contribute.

    What about if you run a private pension separate to your company one ?
    How much do you earn, the pay figure you expect to see on your P60?

  • You'll still be limited by your earnings.  Essentially, you can't get tax relief on money that you didn't pay tax on in the first place.

    You're free to add to a private pension but if your total contributions across the two pensions exceed your earnings for the year there will be no tax relief on the excess.
  • You'll still be limited by your earnings.  Essentially, you can't get tax relief on money that you didn't pay tax on in the first place.

    You're free to add to a private pension but if your total contributions across the two pensions exceed your earnings for the year there will be no tax relief on the excess.
    The highlighted bit isn't true though.

    There are plenty of people contributing who haven't paid tax on their earnings, now or ever.

    If that was correct it would mean some people would be prevented from meeting auto enrolment rules.


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