Naive question about SIPP contribution annual limits

DRS1

Triumph13 said:

And carry forward can be used for the previous three years, not just one.  Used in order current year, then year -3, then -2, then -1

as long as you belonged to a pension scheme in those earlier years

Marcon

solidpro said:

NoMore said:

not quite the basic tax relief counts against the AA as well. So if you have 10k AA available, you can put 8k in a pension and get 2k tax relief to use it up.

Ah, OK. 

So the £60k limit as a company director emcompasses both company and personal contributions.

Not limited to company directors...applies to all employees of a company.

solidpro said:

If I chose to pay some of that limit personally (sticking equal or under the salary element of my P60 income), I should factor in the 25% bump-up when calculating my limit. 

Why would you make a personal contribution if the company can 'afford' to pay it instead? The circumstances where that would be advantageous are very limited (eg if you are a non-taxpayer it might be worth it - but you are clearly paying tax given you have income of 50K).

solidpro

Triumph13 said:

And carry forward can be used for the previous three years, not just one.  Used in order current year, then year -3, then -2, then -1

Sure, just trying to keep this as simple as humanly possible.

solidpro

Marcon said:

Why would you make a personal contribution if the company can 'afford' to pay it instead? The circumstances where that would be advantageous are very limited (eg if you are a non-taxpayer it might be worth it - but you are clearly paying tax given you have income of 50K).

Yes, I appreciate it no longer makes sense. I was being more literal than wise in that comment based on where I started with this thread. It's all clear now, thanks.