I wonder how many errors are at the hands of employers who decided that they didn't need to pay a pesky IFA because AE is so simple and straightforward...
I bet its a large percentage...
I note you've now mentioned a premium, unlike the original article.
Is that the sound of as penny dropping?? :-)
You can't see why this article is somewhat misleading.
I've just realised a FUNDAMENTAL error here - the income is £11500 with the rest taken as dividends - which are NOT PENSIONABLE.
The MAXIMUM contribution to pension that will attract tax relief is £11500.
If anyone is going to invest in pensions based on this article they could be in for a nasty surprise.
Sort of, but not quite...
You can't get tax relief for contributions in excess of REs, but it is in theory possible to pay in more.
You can, however, use carry forward to pay in more, assuming you haven't maxed contributions in previous tax years.
Individuals who have taxable income for a tax year of greater than £150,000 will have their annual allowance for that tax year restricted. It will be reduced, so that for every £2 of income they have over £150,000, their annual allowance is reduced by £1. Any resulting reduced annual allowance is rounded down to the nearest whole pound.
The maximum reduction will be £30,000, so anyone with income of £210,000 or more will have an annual allowance of £10,000. High income individuals caught by the restriction may therefore have to reduce the contributions paid by them and/or their employers or suffer an annual allowance charge.
This will be at a penal rate.
It may be possible to contribute more if carry forward is available - ie previous years pension contribution were less than the maximum.