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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am a retired police officer and have had a police pension

Customer Question

I am a retired police officer and have had a police pension since 2008. Since then I have been employed as a Civil Servant and I currently pay into the civil service pension scheme which incurs 40% tax.
Would I benefit by increasing my current pension contributions to the civil service scheme? I think this would mean I would pay less tax as it is my wages are taxed after deductions are made and as a greater deduction would be made, I would have less income to tax? If this is the case I would also benefit from a better pension in the future?
Hope this makes sense.
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi. You can contribute up to 100% of your earnings into a pension scheme in a tax year and get tax relief but the Civil Service Scheme probably has a contribution limit which you would need to ask them about. If you can pay more into the CS scheme, then you will save some tax and enhance your eventual pension. You need to be aware of the lifetime pension allowance which will be £1,000,000 from April 2016. If the value of your pension funds exceeds this, the excess can be liable to a tax charge of 55%. That limit includes pensions in payment such as your Police pension. Normally, a pension in payment is multiplied by 20 to arrive at its lifetime value. Take a look here and here for more information. I hope this helps but let me know if you have any further questions.
Customer: replied 2 years ago.
Thank you for this, very helpful.
Can you tell me who to contact to find out how much is already in my pension pot and advise me regarding the right wording I should use.
Expert:  TonyTax replied 2 years ago.
If you are referring to your Civil Service Pension, you should ask the pension scheme trustees through the website here. There is a calculator here. You just need to ask for a projection of your pension pot at a future retirement date based on the current contribution levels.
Customer: replied 2 years ago.
Thank you.
Is it £1m maximum per pension or a combination of both my pensions (Police and Civil Service)?
Expert:  TonyTax replied 2 years ago.
Its the total of all your pension funds. It doesn't include state pension.
Expert:  TonyTax replied 2 years ago.
Hi.I'm just following up to find out if my answer helped or if you have any further questions.