Pension, PIP, check my workings?
My question is how much pension contribution can this client make prior to 5 April 2012?
During the current tax year we have made a contribution of £60k. We wish to determine how much headroom there is for additional payments.
The guidance is saying that if I have exceeded the £50k in the tax year (which I have) then I need to consider the previous three tax years (or face a tax charge). Fair enough.
But, I need to then consider the amount of the contributions in the pension input period (PIP) which ended in the previous three tax year. If I follow that through then I would need to ignore the £41,000 which was paid in the PIP ended in 11/12.
The PIP for this scheme is 6 April.
This doesn't seem right!
| GROSS | GROSS | EXCESS | EXCESS | |||
| TAX YEAR | PIP 6 APRIL | TOTAL | ANN. ALL | TO C/F | TO C/F. CUMM | |
| 08/09 | 7/4/07 - 6/4/08 | 18,000 | 50,000 | 32,000 | ||
| 09/10 | 7/4/08 - 6/4/09 | 19,000 | 50,000 | 31,000 | 63,000 | |
| 10/11 | 7/4/09 - 6/4/10 | 20,000 | 50,000 | 30,000 | 93,000 | |
| 11/12 | 7/4/10 - 6/4/11 | 41,000 | 50,000 | 9,000 | 70,000 | |
| 12/13 | 7/4/11 - 6/4/12 | 60,000 | 50,000 | -10,000 |
You're not ignoring the £41K