How much can be paid into my company pension scheme each tax year?Thu Feb 12 15:50:25 GMT 2015
You, your employer, or someone else on your behalf, can pay contributions to your plan.
If you’re automatically enrolled, there’s a minimum amount set by the government that must be paid into your plan, unless you opt out or choose to reduce the level of your contributions. Your employer must contribute and may require you to contribute as well. You can find out more in your product key features.
If you’re automatically enrolled but still want to reduce contributions to below the minimum level, your employer doesn’t have to contribute.
You can receive tax relief on contributions up to 100% of your relevant UK earnings or, if higher, £3,600 in each tax year. This tax relief limit applies to all contributions made by you, or someone else other than your employer, to all pension plans that you have. The amount of tax relief depends on your individual circumstances.
If the total contributions paid to all your pension plans in any tax year is more than that year’s annual allowance, you may be subject to a tax charge on the amount paid over your annual allowance, unless you have any unused amounts that you can carry forward from the previous three years.
The annual allowance is the overall amount that can be paid into pension plans to benefit from tax relief. For the tax year 2013/14, the annual allowance is £50,000 reducing to £40,000 for the tax year 2014/15. If you think your total contributions will be more than the annual allowance, you should speak to a financial adviser.