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Original poster

SE & retrospective pension contribs?

6 replies

remembershithead · 06/01/2023 12:32

Can anyone help with a self employed pension contribution question?

I earned £4400 in 21-22 from work and some building society interest.

I paid £3775 into my pension.

Can I retrospectively top that up to reflect the £4400? (Minus the 20% tax of course?)

Thank you

OP posts:
Original poster
remembershithead · 06/01/2023 14:32

Bumping

OP posts:
Bard6817 · 06/01/2023 14:33

You can add upto your total salary in the year.

You can go beyond too, if you were under in previous years too and use the previous two years annual allowance.

Sunsetintheeast · 06/01/2023 15:20

Bard6817 · 06/01/2023 14:33

You can add upto your total salary in the year.

You can go beyond too, if you were under in previous years too and use the previous two years annual allowance.

No you can’t go beyond your salary. FFS.

The answer to your question is no. Pension payments are only in the year you earn. Your interest does not count towards that limit either.

100% of your salary is the limit. You can put in £40k and IF you earn more than that, THEN you can reach back to previous allowances.

Then once you earn 200k it gets messy again.

RandomPerson42 · 06/01/2023 16:02

Sunsetintheeast is correct, but I would add that the maximum you can put into your pension is the salary minus the government tax relief that will be added, so effectively 80% of the salary.

I.e. upto 100% of your salary going into your pension includes the tax relief added by the government.

You say you paid £3775 into your pension… if this excludes the tax relief then the tax relief will have taken the amount upto £4530 which is more than your salary and not allowed - so you would need to contact HMRC.

Sunsetintheeast · 06/01/2023 16:18

RandomPerson42 · 06/01/2023 16:02

Sunsetintheeast is correct, but I would add that the maximum you can put into your pension is the salary minus the government tax relief that will be added, so effectively 80% of the salary.

I.e. upto 100% of your salary going into your pension includes the tax relief added by the government.

You say you paid £3775 into your pension… if this excludes the tax relief then the tax relief will have taken the amount upto £4530 which is more than your salary and not allowed - so you would need to contact HMRC.

Indeed a good point of clarification. Your GROSS salary is the marker!

Original poster
remembershithead · 06/01/2023 22:36

Thanks for the clarifications

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