Start Pension contributions rules on backdating

Pension contributions rules on backdating

Under current pension rules, women and men need 30 qualifying years to get the full basic state pension, worth £97.65 a week for this tax year.

The Department for Work and Pension (DWP) has issued a "use it or lose it" statement advising eligible individuals to take advantage of an opportunity to boost their state pension by thousands of pounds if they make voluntary contributions before the end of this tax year.

Please contact us for guidance or advice if you are unsure whether a SIPP is right for you.

If you've been in and out of the workforce, there's a good chance your National Insurance contributions (NICs) record has a few holes.

The lifetime allowance is a limit to the amount you can save in your SIPP or other pension over your lifetime.

The allowance is currently £1 million – you will pay tax on any pension savings you make in excess of this.

I am a shareholding director in my own business and draw a low salary with the bulk of my income coming from dividends.

I want to make a lump sum investment into my pension, but I am unclear as to how much I can actually put in.

I have read in some literature included in my recent pension statement that I can contribute up to £40,000 but elsewhere it mentioned that I cannot put in more than my salary. The maximum you can personally invest into a pension and receive tax relief is 100% of your salary subject to an annual allowance limit which is currently £40,000. If, as an example, you have a salary of £8,000 and dividends of £45,000 the maximum you can personally invest is £8,000.