- August 4, 2023 at 1:25 am #689361abhishekbakshiParticipant
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Hi, I’m a bit confused regarding when to check the threshold income and when to check the adjusted income.
Please let me know if my understanding is correct –
Firstly, these two things are only needed to be checked if tapering of Annual Allowance is needed.
First step is to check the Threshold Income (Net Income – Personal Pension Contributions) is below 200,000. If it is below the limit we do not need to check Adjusted Income and there is no need to taper.
If Threshold Income is above 200,000 we go to the Adjusted Income calculation
Less:Employee Contributions (PPC+OPC)
Less: Employer Contributions (OPC)
If the adjusted income is above 240,000 then only we taper by the half of the excess of 240,000 (restricted to 4000 allowance).
Would really appreciate if you can confirm my understanding is right here.August 6, 2023 at 3:17 pm #689468JillyBKeymaster
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section 3 of the chapter in the manual and the corresponding lecture will explain – have you wacthed/read?
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