hello Sir i am confused when should i refer to relevant uk earnings and when to effective annual allowance. for example if a trading profit is 34000 and pension contribution is 40000 gross then shall i see the greater of 3600 and 34000. and when do we add the excess contribution to the relevant uk earning please clear it regards
Only 34,000 would achieve tax relief with no relief for the excess. The AA is not relevant as the qualifying contributions have not exceeded 50,000. Review illustration 2 chapter 9