- Request a call back
The amount you can personally pay in is generally limited to your salary to a salary cap of £50,000.
Under a SSAS, most people have their earnings paid as dividends beyond the annual allowance. Dividends are not treated as salary for the purpose of assessing your annual limit.
The technical stuff
The threshold level for personal contributions is the lower of the annual allowance or total earnings within the same tax year. Tax relief is only granted on contributions up to 100% of earnings in any tax year, to the annual allowance which is presently £50,000.
Contributions paid in respect of your business or from a third party count towards your annual allowance.
If the total of the business’s contribution for you plus your personal contribution exceeds the annual allowance then the member may have to pay tax on the excess. However see carry forward and unallocated contributions below.
Tax relief on contributions in excess of the annual allowance can be given through unused annual allowances from the previous three qualifying tax years.
This will be based upon a notional £50,000 annual allowance cap for each year, you will need to deduct any contributions paid during those tax years and any excessive contributions will need to be accounted for. We will work this out for you.