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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Pensions
Satisfied Customers: 4556
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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In 40k annual limit what all is included? Employee employer

Customer Question

In 40k annual limit what all is included? Employee employer tax credit? What happens if this limit is exceeded?
Submitted: 19 days ago.
Category: Pensions
Expert:  Virtual-mod replied 18 days ago.

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Expert:  Rakhi Vasavada replied 17 days ago.

Dear Friend,
Hello and welcome.
This 40k annual limit is your annual allowance; this is the most you can save through this year before you pay tax. You will be subject to tax if this limit is exceeded.

Many things are included in this. This will include ALL of your private pensions. This would further include contributions to defined contribution schemes and would also in turn include any increases made in that.

However, also note that if you are not using up your entire annual allowance limit, you will be allowed to carry it forward if unused for 3 previous tax years.

Hope this answers your query. Feel free to revert if you need any more assistance. Assuring you best of my attention at all times.


Expert:  Rakhi Vasavada replied 2 day ago.

I believe that you have received the information that you requested.
Thank you.