Paying into pension whilst on benefits

dogartist

Hi,  New here.  Please can someone tell me if there are any limits to how much I can pay into my private pension whilst unemployed and receiving benefits?  Many thanks

FIREDreamer

dogartist said:

Hi,  New here.  Please can someone tell me if there are any limits to how much I can pay into my private pension whilst unemployed and receiving benefits?  Many thanks

£2,880 net / £3,600 gross maximum - assuming you can afford it.

EDIT: Annual amount per tax year.

Marcon

This is worth reading if you are on benefits and make pension contributions: https://www.litrg.org.uk/pensions/paying-pensions/pension-contributions-effect-state-benefits

SacredStephan

It depends when you became unemployed and what your earnings (from employment or self-employment) are this current tax year.

xylophone

https://www.litrg.org.uk/pensions/paying-pensions/tax-relief-pension-contributions

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100

dogartist

Many thanks for all your replies.  What do I need to do if I think I have put too much (marginally) into the pension?

itsthelittlethings

I don’t think there is a limit as to what you can put in, there is a limit to what you can get tax relief on.

dogartist

Many thanks.  From all the information I have read this is a very confusing topic.  I can't get through to HMRC and my pension company is not aware of any limits to paying in.  But I have found on the internet just what FIREDreamer said, that you can pay in £2,880.00 net per year maximum.  This suggests a limit to how much to can pay in.  So I am not sure who I can ask.  Can anyone point me in the right direction?  It would be much appreciated.  I just want to get things right with my pension.  Many thanks

Isthisforreal99

dogartist said:

Many thanks.  From all the information I have read this is a very confusing topic.  I can't get through to HMRC and my pension company is not aware of any limits to paying in.  But I have found on the internet just what FIREDreamer said, that you can pay in £2,880.00 net per year maximum.  This suggests a limit to how much to can pay in.  So I am not sure who I can ask.  Can anyone point me in the right direction?  It would be much appreciated.  I just want to get things right with my pension.  Many thanks

Tell your pension provider you have exceeded the limit on which you can get tax relief. If they cannot unwind it (some companies do not accept contributions that do not attract relief and you most likely said they do qualify) you may need to complete a Tax Return so that HMRC can recover the excess relief

Albermarle

dogartist said:

Many thanks.  From all the information I have read this is a very confusing topic.  I can't get through to HMRC and my pension company is not aware of any limits to paying in.  But I have found on the internet just what FIREDreamer said, that you can pay in £2,880.00 net per year maximum.  This suggests a limit to how much to can pay in.  So I am not sure who I can ask.  Can anyone point me in the right direction?  It would be much appreciated.  I just want to get things right with my pension.  Many thanks

When you pay directly into a pension, the provider automatically claims basic rate tax relief for you from HMRC and adds it to your pension.
It is your responsibility to not add more than you are entitled to. 
If you have paid in more than £2880 and therefore got more tax relief than you should have then you need to inform the provider. They should be able to refund you and HMRC with the relevant amounts. It happens quite a lot.

 I can't get through to HMRC - No need to contact HMRC

my pension company is not aware of any limits to paying in. I think there is some misunderstanding here.
If you call them or message them again, just say you have paid in more than you should have, and received more tax relief than you should have . You should have only paid in £2880 and got £720 relief as you are a non earner, but have paid in £XXX .

dogartist

Thank you so much. I will contact my pension provider again and explain it to them.  Hopefully this can all be sorted out.  Thank you to everyone