Peter’s wife,Catherine, is employed by Peter’s partnership. She is paid an annual salary of £290,000 in thet ax year 2021/22.She pays10% of her salary in to her employer’s occupational pension scheme and her employer(the partnership) pays a further 5% into the same scheme. Catherine also made a gross contribution into a personal pension scheme in the tax year of £10,000. They jointly own a property and has generated £67000 as profits.
What is Catherine's Annual Allowance?
In the solution 290000*10% pension is deducted and Catherine’s and employer’s contribution to occupational pension (10%+5%)×£290,000 is added to the adjusted income. Can you please explain why?
Ask the Tutor ACCA TX-UK
Pension
Where is this question from? Please show the answer
BPP Workbook-Pensions-Activity 4
Employment Income(290000-10%*290000) 261000
property Business Income 33500
Net Income 294500
Catherine and employers contribution 43500
to occupational pension scheme
Adjusted Income 338000
Its added to the adjusted income of the partnership as it is a private expense and disallowed for tax purposes
Sign in to reply to this topic.