Allocating pension tax credits between spouses

A

Apollo

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hi,

A married couple I know are in the following situation;

He is self employed

She looks after the kids and earns a part time income giving grinds which she puts into a personal pension each month.

The grinds income isn't declared to revenue so there is no tax relief on premiums paid each month to her personal pension.

I've told them if they get audited they could be in trouble.

Can he contribute into her pension and get tax relief for it?

She can reimburse him then.


Thanks
 
Am I missing something here?

She wants to be able to put hot money into her pension fund and for him to get tax relief on it?

Is the world gone mad altogether?

You put money into a pension fund to get tax relief. If you are not paying any tax because you are illegally evading tax, how can you expect tax relief?
 
hi,

as per my question - Can he contribute into her pension and get tax relief for it?

In other words can he put money he is earning and paying tax on into her pension, his wife, and get tax relief is all I'm asking really.

If not then how do stay at home spouses save for a pension?

She will probably then reimburse him but they just want this question answered.


Thanks
 
Simple answer is "NO"
If he is earning (and declaring for tax) he can claim relief on contributions he makes into his pension.
If she is not earning (officially) then there is no income on which to pension. If she declares an income, then she can contribute out of that income and claim relief.

Stay at home spouses (who do not earn an income) dont have an income to replace when they retire. If the only (official) income into the household is his income, then that is the income on which a pension can be funded.
 
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