Pension contributions rules on backdating duet dating ru

(Members of occupational money purchase schemes receive full tax relief on contributions via their payroll).

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There is also a maximum amount you can hold in your pension over your lifetime – this is called the lifetime allowance.

Normally you can pay as much into your pension as you earn each year, up to a maximum of £40,000. Transferring pensions between providers doesn't use up your annual allowance.

Step four: The husband invests the £3,600 into his pension.

It immediately gets boosted by the 20pc rebate – that's £900, taking it to a total £4,500. As a higher rate taxpayer, the husband can claim back the further 20pc (taking their total rebate to 40pc) through his tax return, netting another £900.

Every year you get a generous allowance for making contributions into SIPPs and other pensions.

The Government sets this limit because your pension contributions are topped up with 20-45% tax relief.

Nick has been a specialist tax writer since 1989, first in South Africa where he edited the monthly Tax Breaks publication, and since 1999 in the UK, where he has authored several tax books.

Nick also has a Ph D in economics from the University of Glasgow, where he was awarded the prestigious William Glen scholarship and later became a Research Fellow.

Pensions are attracting more attention in the media as people are living longer.

Employers are becoming obliged to have a minimum level pension scheme in place for employees aged 22 and over who earn more than £10,000 per year under the auto-enrolment rules.

We cannot advise on whether or not you should pay into a particular pension.

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