Member Contributions

As of ‘A’ Day unlimited contributions can be made to the scheme in any tax year.  However for the contribution to qualify for tax relief the contribution must be a relievable pension contribution made by a Relevant UK Individual.  In addition to this tax relief will only be payable on the maximum of £3,600 or 100% of your earnings (up to the Annual Allowance).

Contributions will not be relievable pension contributions if made:

• after the member’s 75th birthday
• by an employer
• are age related rebates
• are minimum contributions (contracted out contributions)

Tax Relief

Member contributions are paid with tax relief at source, i.e. contributions will be paid net of basic rate tax (currently 20%).  If the member is a higher rate tax payer they will be able to claim a further 18% through their self assessment tax return.

For example, if the member wishes to make a contribution of £100 then the member would pay the scheme £80 and a further £20 will be claimed from HMRC in tax.  If the member is a higher rate tax payer a further £18 will be claimed in their self assessment tax return.

Pension Input Period

The pension input period is a period not exceeding 12 months over which all pension contributions are measured.  This period need not be the same as a tax year.  The amount of all pension contributions will be tested against the annual allowance applicable at the time of the last contribution in the input period.  The member may have different input periods for different registered pension arrangements.