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Pension Contributions

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Pension Contributions

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by AvatarJillyB.
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    Posts
  • January 31, 2023 at 8:33 pm #677683
    Avatarjames8500
    Participant
    • Topics: 68
    • Replies: 17
    • ☆☆

    What is the maximum contrubition an individual can make? I understand that anything above the annual allowance is added to an individuals income and taxed at marginal rate.

    However, what is the individuals relevant earnings exceeds the annual allowance and the pension cont is above relevant earnings

    e.g:

    Relevant earnings 80,000
    Annual allowance 70,000
    Pension cont 90,000

    Is the annual allowance charge that is added to income 10,000 or 20,000?

    Thanks

    February 2, 2023 at 4:12 pm #678152
    AvatarJillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    the annual charge is not added to income.
    Have you read the relevant chapter in the manual – it explains everthing

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