If you’re a UK taxpayer, in the tax year 2020-21 the standard rule is that you’ll get tax relief on pension contributions of up to 100% of your earnings or a £40,000 annual allowance, whichever is lower. get caught out by this restriction. More about employer pension contributions. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk. The MPAA only applies to contributions to defined contribution pensions and not defined benefit pension schemes. You can also save into a pension for your children or grandchildren. across all your pensions and receive tax relief. Taking control of debt, free debt advice, improving your credit score and low-cost borrowing, Renting, buying a home and choosing the right mortgage, Running a bank account, planning your finances, cutting costs, saving money and getting started with investing, Understanding your employment rights, dealing with redundancy, benefit entitlements and Universal Credit, Planning your retirement, automatic enrolment, types of pension and retirement income, Having a baby, divorce and separation, what to do when someone’s died, choosing and paying for care services, Buying, running and selling a car, buying holiday money and sending money abroad, Protecting your home and family with the right insurance policies, Coronavirus Money Guidance Any contributions you make over this limit won’t attract tax relief and will be added to your other income and be subject to Income Tax at the rate(s) that applies to you. pensions. More details can be found in our Don’t include personal or financial information like your National Insurance number or credit card details. Start a webchat online or call us on 0800 138 1677. All employers are now required to automatically enrol all eligible workers into a pension scheme. The way some workplace pension schemes give tax relief mean that people earning less than the personal allowance (£12,500 in the 2020-21 tax year) won’t get tax relief. Accept and close If you want to make a pension contribution above the amount you earn, your employer might be able to help. If you haven’t used your full allowance from previous years, you might be able to carry it forward and use it in Pension contributions. You can change your cookie settings at any time. Looking after your dependants in retirement, Getting professional help if you are worried about savings, investments or pensions, Help if you are worried about your savings, investments or pension, Pensioner bonds: a guide to the fixed-rate savings bonds for over-65s, Understanding what Pension Wise is and how to use it. There’s no limit on the amount that an individual can contribute to a registered pension scheme. work or pay tax. We use Cookies: By using this website, you consent to their use. Add +44 7701 342744 to your Whatsapp and send us a message. Our website offers information about investing and saving, but not personal advice. Give us a call for free and impartial money advice. Tax relief is limited to relief on contributions up to the higher of: From 6 April 2016 your annual allowance will be reduced if your adjusted income for the tax year is more than the adjusted income limit. For everything else please contact us via Webchat or Telephone. How could getting divorced affect my pension and retirement income? pension calculator to help work out the amount that’s best for you. It will take only 2 minutes to fill in. adjusted income is broadly your total taxable income, plus any pension contributions paid by your employer. whichever is greater. However, you can carry forward unused allowances from the previous three years, as long as you were a member of a pension scheme during those years. The lifetime allowance is £1,073,100 for the tax year 2020-21. Our advisers will point you in the right direction. You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief you get on your pension contributions. Your annual allowance is the most you can save in your pension pots in a tax year (6 April to 5 April) before you have to pay tax.