For the tax year 2025/26, Juliet's only taxable income was employment income of £290,000 which is stated after a contribution to her employer's occupational pension scheme of £10,000. Her employer paid 16,000 into the same scheme.Julia's adjusted income is £(290,000 + 10,000 + 6,000) = £306,000Juliet’s tapered annual allowance for 2025/26 is calculated as follows:£(60,000 – ((306,000 – 260,000) x 50%)) = £37,000.
From: Pension Schemes › 3 Annual Allowance (AA)
Hi all,
Quick question in illustration 3 the employer contribution is £16,00 yet £6,000 has been accounted for in the computation. is this a typo?
Kind regards,
Ciara