Pension Annual Allowance After Accessing Drawdown

Dazed_and_C0nfused

slpierce said:

Triumph13 said:

As someone who was hit by the MPAA when it was £4k, and had to pay back the tax relief in the knowledge that I'd get taxed again when I withdraw from the pension, I can definitely agree that it hurts, but I too don't agree it's unfair.  The whole point of allowing us tax relief is to help us save for after we stop working.  

More to the point, if you are going to be paying 7% and your employer 14%, you'd need a pretty a nearly 20% pay rise from your current £42k pa for that to come to more than £10k a year.

I agree, after going more in depth about the subject It's not unfair, and looking at what people have said on here I'll be just under the £10k anyway on a £42k salary with 7%/14% with some quick maths it's around £8820 per year contributions, thank you all for your help, oh one more question I also have a Nest workplace pension would there be a penalty transferring that to a new pension with a new employer taking into consideration everything I have discussed on here?

If your 7% is made under the relief at source method then you need to factor in the £735 basic rate relief that will be added (within the pension) to your contribution.