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pension contributions

paying in more than net relevant earnings

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I see that you can take into account unused annual allowance brought forward, but am I right that the amount paid into a pension in a tax year is first restricted to the NRE, before any b/f allowance is considered?  so if my earnings are £50k I can get relief on paying in £50k if I have £10k unused allowance b/f.  But If my earnings are £30k and I have £20k unused relief b/f I would be restricted to paying in £30k?

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By gainsborough
25th Mar 2019 10:09

Yes, that is correct WillowTree (the excess over NRE cannot attract tax relief).

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Replying to gainsborough:
By Wilson Philips
25th Mar 2019 10:12

Although, to clarify, one can pay in more than earnings, within unused allowances. You just won’t get tax relief on the excess. But you will need to advise the pension administrator otherwise they will claim 20% on the whole amount.

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By Matrix
25th Mar 2019 19:15

Also the maximum is the gross amount so if your earnings are £50k you can only pay in £40k net.

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