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UC, Pension contributions and taxable income

2 replies

talkingdeadscot · 08/05/2023 16:28

Is anyone able to clarify something for me regarding the above please?

I cashed in a couple of small pensions when I was ill so am limited to 4k per year contributions to my pension. I understand this limit is increasing to 10k per year, does anyone know when this change will come in?

My contributions are also limited to £3600 per annum as I have no earnings.

I'm considering getting a lodger and this income is disregarded for UC purposes. Does anyone know how income from a lodger is treated for tax purposes? Is it taxable income for the purpose of contributing to a pension? Or is it not considered income under the rent a room scheme where you can have £7500 tax free income so therefore not considered earnings for my pension contributions?

I'm sure I could have said that in a simpler way but hopefully someone can let me know or point me in the right direction. Thanks.

OP posts:
Chewbecca · 08/05/2023 22:16

MPAA went up to £10k from April 23.

Rental income is not ‘relevant income’ for pension purposes.
Rent a room income is tax free up to £7500 pa.
These questions are separate, standalone questions.

talkingdeadscot · 08/05/2023 23:03

Chewbecca · 08/05/2023 22:16

MPAA went up to £10k from April 23.

Rental income is not ‘relevant income’ for pension purposes.
Rent a room income is tax free up to £7500 pa.
These questions are separate, standalone questions.

Thanks for your help. I'm much clearer now.

OP posts:
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