Thanks Gordon. Is the general consensus to keep contributing past the limit if one can in my bracket ?
How does that work exactly, for an employer scheme?They would still take the contributions but they wouldn’t attract tax relief in the current year. The relief would carry forward.
All pay, subject to PAYE is included, Salary, overtime, bonus, holiday pay and also health insurance BIK, or any other BIK like vehicle BIK, and RSU’s(shares)is included.Partner is a civil servant. Does the limit include all income including year end bonus received through payroll?
You can claim any relief that you're due that isn't given through payroll on a tax return for the year.How does that work exactly, for an employer scheme?
The more advanced payroll systems, stop relief when the limit is reached, as they have internal controls that check taxable pay and age, and they cross check them against the limits.
So if the limit is surpassed, in the final payroll period of the year, the relief will not carry forward into the following tax year.
Thanks Gordon. Is the general consensus to keep contributing past the limit if one can in my bracket ?
Thanks Gordon. Is the general consensus to keep contributing past the limit if one can in my bracket ?
Totally agree, that over payments in excess of the age related limits, made in Jan/Feb/Mar, has been invested for several months before tax relief is clawed back.I think there is a reasonable argument for over contributing. I have done so more than a decade ago.
You get tax free growth.
You get longer time in market
You get the tax relief in the future (although some risk the government could change this in the future)
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