Pension contributions rules on backdating updating game for playstation 3 internet
We cannot advise on whether or not you should pay into a particular pension.
We recommend that you get some financial advice, for example from an independent financial adviser (IFA).
Every year you get a generous allowance for making contributions into SIPPs and other pensions.
The Government sets this limit because your pension contributions are topped up with 20-45% tax relief.
Step four: The husband invests the £3,600 into his pension.
It immediately gets boosted by the 20pc rebate – that's £900, taking it to a total £4,500. As a higher rate taxpayer, the husband can claim back the further 20pc (taking their total rebate to 40pc) through his tax return, netting another £900.
More about Damien Reader Question: How do I go about claiming higher rate tax relief on my private pension?
If you have not claimed higher rate tax relief for a previous tax year it is possible to make a claim - subject to certain time limits.The usual £40,000 annual allowance is cut for people with annual earnings of more than £150,000.The allowance reduces by £1 for every £2 earned above £150,000, down to a minimum of £10,000 for those earning more than £210,000.Pensions are attracting more attention in the media as people are living longer.Employers are becoming obliged to have a minimum level pension scheme in place for employees aged 22 and over who earn more than £10,000 per year under the auto-enrolment rules.