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FREE Pension calculator spreadsheet: How much pension contributions can you make and what are the tax reliefs available?

October 2, 2017

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We have created a spreadsheet that shows you how much money you can contribute towards your pension based on your earnings. The more money you earn the more you can contribute. There are caveats to this and you can find out more by reading the various articles below.

It is worth noting that the maximum amount of money they can invest into a pension is £40,000. This amount is reduced if you a) do not earn that level of income b) you have taken money out of your defined contribution pension scheme or c) your earnings are from property. If you earn all your money from property the limit is significantly reduced to £3,600 and finally d) if you earn in excess of £110,000 then pension contributions may also be reduced.

If you have not contributed towards your pension before then you need to be aware that you can go back several tax years to use up previous years allowances.

This article shows you why certain people earning over a certain limit will be limited to the amount of pension contributions they can make. The limit can be reduced from £40,000 right down to £10,000. Article:

You also need to be aware that there are different types of pensions you can invest into. There are managed funds through companies like St James’s Place or SIPP/SSAS pension funds that provides greater degree of control for you to decide how the money is invested Article for SIPPS: 

A lot has been said about how you can use SSAS pensions to invest into residential property investments. Albeit there is a degree of truth into this there are many obstacles that need to be jumped over to ensure that you adhere to the red tap regulations. Article:

In the below article we show how both employers and employees both benefit from the pension contributions because of the various tax reliefs. If you are in a salary sacrifice employed position there is nothing more you need to do in regard to your pension contributions. If you are not in a salary sacrifice or you make additional voluntary contributions then you may need to claim the tax reliefs through your self assessments as high rate or additional rate tax payers.

This article also shows the amount of pension contributions you can make based o your earnings. Article:

One of the most powerful benefits of pension contributions is that the investment sits out of your estate. This means that the pension value is not taken into account when valuing your asset value for inheritance tax (IHT) purposes: Article:

You also need to be aware that your work placed pension scheme is at risk should you die. Most people are not aware that your pension is only passed to your spouse at 50% of the investment value. Worst still when you both pass away your work based pension investment scheme also dies with you. This means that the pension contributions you have made cannot be passed onto your children upon your death unless you have taken wealth and tax planning advice. Article:



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Telephone: 0115 939 4606
Email: simon@optimiseaccountants.co.uk