Pension limits for personal and Ltd company contributions

Dazed_and_C0nfused

RemotecUK said:

dunstonh said:

Is the total limit in this case £48,000 - that is £38,000 personal and £10,0009 from the Ltd?

No.
Limited company can use the remainder of the £60k annual allowance and use carry forward from the previous three years.   However, you would probably only want to do that if you have the profit to get corporation tax relief.

I'm still not sure if the LTD can add either:

£60,000 - £38,000 = £22,000 (where the £38k is taxed income I have paid in to my personal SIPP).

or

£60,000 - £47,500 = £12,500 (where the £47.5k is the grossed up amount from the £38k I have added from my taxed income into my personal SIPP).

If anyone could point me at any rules or regulations thar would also be useful as I have struggled to work this out.

It's neither now as today is 6 April, a brand new tax year.

The annual allowance includes any pension tax relief added to "relief at source" contributions, you can't just ignore that so £38,000 was never a relevant factor.

Grumpy_chap

RemotecUK said:

 the LTD can add 

£60,000 - £47,500 = £12,500 (where the £47.5k is the grossed up amount from the £38k I have added from my taxed income into my personal SIPP).

This.     

RemotecUK

Grumpy_chap said:

RemotecUK said:

 the LTD can add 

£60,000 - £47,500 = £12,500 (where the £47.5k is the grossed up amount from the £38k I have added from my taxed income into my personal SIPP).

This.     

Thanks. So this years allowance is up to £72,500 which is £60,000 + £12,500 if transferred directly from a Ltd company.

If I am working PAYE I need to take into account tax relief added at source to any figure from my employer or personal contributions from tax income.

Thanks again.

Grumpy_chap

RemotecUK said:

Grumpy_chap said:

RemotecUK said:

 the LTD can add 

£60,000 - £47,500 = £12,500 (where the £47.5k is the grossed up amount from the £38k I have added from my taxed income into my personal SIPP).

This.     

Thanks. So this years allowance is up to £72,500 which is £60,000 + £12,500 if transferred directly from a Ltd company.

No.

What the post above said.
£60k gross from all sources 
£38k personal contribution is grossed up to £47.5k.
Plus £12.5k company contribution 
Makes total £60k.

Assume you had relevant earnings to cover the £47.5k.  Earnings do not include dividend, interest, investment income.
Assume no carry forward.

Dazed_and_C0nfused

Grumpy_chap said:

RemotecUK said:

Grumpy_chap said:

RemotecUK said:

 the LTD can add 

£60,000 - £47,500 = £12,500 (where the £47.5k is the grossed up amount from the £38k I have added from my taxed income into my personal SIPP).

This.     

Thanks. So this years allowance is up to £72,500 which is £60,000 + £12,500 if transferred directly from a Ltd company.

If I am working PAYE I need to take into account tax relief added at source to any figure from my employer or personal contributions from tax income.

Thanks again.

No.

What the post above said.
£60k gross from all sources 

I think the op means in this new tax year, having missed the boat for 2024-25.

But as there is no tax relief due on employer contributions I'm not sure why they think there could be any tax relief to be added from those contributions?

Grumpy_chap

Dazed_and_C0nfused said:

Grumpy_chap said:

RemotecUK said:

Grumpy_chap said:

RemotecUK said:

 the LTD can add 

£60,000 - £47,500 = £12,500 (where the £47.5k is the grossed up amount from the £38k I have added from my taxed income into my personal SIPP).

This.     

Thanks. So this years allowance is up to £72,500 which is £60,000 + £12,500 if transferred directly from a Ltd company.

If I am working PAYE I need to take into account tax relief added at source to any figure from my employer or personal contributions from tax income.

Thanks again.

No.

What the post above said.
£60k gross from all sources 

I think the op means in this new tax year, having missed the boat for 2024-25.

But as there is tax relief due on employer contributions I'm not sure why they think there could be any tax relief to be added from those contributions?

OK.  That makes sense.

I think you missed out an important "no"

as there is tax relief due on employer contributions

Should read

as there is NO tax relief due on employer contributions

Dazed_and_C0nfused

Grumpy_chap said:

Dazed_and_C0nfused said:

Grumpy_chap said:

RemotecUK said:

Grumpy_chap said:

RemotecUK said:

 the LTD can add 

£60,000 - £47,500 = £12,500 (where the £47.5k is the grossed up amount from the £38k I have added from my taxed income into my personal SIPP).

This.     

Thanks. So this years allowance is up to £72,500 which is £60,000 + £12,500 if transferred directly from a Ltd company.

If I am working PAYE I need to take into account tax relief added at source to any figure from my employer or personal contributions from tax income.

Thanks again.

No.

What the post above said.
£60k gross from all sources 

I think the op means in this new tax year, having missed the boat for 2024-25.

But as there is tax relief due on employer contributions I'm not sure why they think there could be any tax relief to be added from those contributions?

OK.  That makes sense.

I think you missed out an important "no"

as there is tax relief due on employer contributions

Should read

as there is NO tax relief due on employer contributions

Very good point 😳.

Have amended my post thanks