As well as providing a valuable benefit in helping people save to provide an income in their retirement, pensions contributions can:
Tax Relief on individuals' contributions is only available up to 100% or £3,600 (including tax relief), whichever is greater, of their Relevant Earnings. Subject to the maximum of the annual allowance limits, if these are exceeded there may be a tax charge. For more information please refer to the Annual Allowance Calculator.
To help you understand the effect a pension contribution can have on someone's tax position, we've developed a calculator.
Using the calculator
Our Tax Relief Modeller allows you to input the details of your client's income and existing pensions contributions. It then works out and graphically displays:
It then allows you to input an additional pension contribution.
Full calculations are available as well as graphically displaying the before and after contribution position.
NOTE: The calculator does not take into account National Insurance.
The tax relief modeller is designed to support latest browsers and operating systems - the later the better! Please refer to your browser help section for Compatibility view settings' if certain screens are not displaying correctly.
As well as tax relief available on contributions, the annual allowance position also needs to be considered. Visit our Annual Allowance calculator below.
|Annual Allowance Calculator|
|(this requires Microsoft Excel - version 97 or later)|
If you have any questions on the taxation of personal pension contributions you can contact our technical experts 03457 11 12 13.
Both our calculators are based on our understanding of current taxation, legislation and HM Revenue & Customers practice, all of which is subject to change without notice. The impact of taxation (any other reliefs) depends on individual circumstances.
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