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Dear Sir,
I am a little bit confused as to how much the pension contribution limit is for the year 2016/2017.
On the one hand it mentions that the limit is at 3’600 per year.
On the other it mentions that there is an annual allowance is 40’000So what is the maximum that an employee can contribute?
Thanks for your help.
I think I cleared it up.
The 3’600 is the maximum contribution that can be made without any evidence or without any earnings.
And the 40’000 annual allowance is in the case one contributes to the pension scheme correct?
(apart from any carry over from previous years)Yes the 3,600 is the gross amount that any taxpayer may contribute into their pension fund without reference to their relevant earnings and the 40,000 AA is the total pension input allowed in the tax year (subject to unused AA b/f) before an AA charge arises
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