Pension

Question 1

What is a Eligible jobholder

Answer 1

Work in the UK
Aged between 22 and state pension age
Earn more than £10k pa

Question 2

When can employees request to join the pension scheme

Answer 2

If they earn between £6,240 and £10,000 pa

Question 3

What are the Minimum occupational pension contributions

Answer 3

8% of which employer must pay at least 3%

Question 4

What is the Personal pension scheme contributions relief

Answer 4

Uplift both basic rate and higher rate by grossed up personal contribution (100/80)

Question 5

What is the Maximum gross pension contribution an individual can get IT relief on

Answer 5

Higher of
100% x relevant earnings
£3,600

Question 6

What are the Relevant earnings for pension

Answer 6

Taxable trading profits plus employment income

Question 7

What is the Annual allowance for pension contributions

Answer 7

£60,000

Question 8

Can unused pension annual allowance be carried forward

Answer 8

Yes, for three years on a FIFO basis after the current year’s allowance has been used

Question 9

What age can pensions be paid out

Answer 9

55

Question 10

What is the Maximum tax free lump sum someone can take out of their pension at retirement

Answer 10

25% of value of fund capped at £268,275