The Tapered Annual Allowance explained

Most people can contribute 100% of their earnings into a pension, up to £40,000 a year. But that’s not the case for high earners.

Thanks to something called The Tapered Annual Allowance, which was introduced in 2016.

In this video I explain who is affected by the Tapered Annual Allowance and how it impacts the amount you can contribute into your pension.

For the latest exact figures, visit the government website link below:

For more videos about the Pension Annual Allowance, check out:

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[MartynThomas]

Great video. Short and sweet. Clearly explains a dull and dusty aspect of the Pension/Tax rules that few other places explain.

[K]

Does Adjusted income include Salary sacrifice employee pension contributions?

[ghwul]

If a person has contributed the max. Contributions to their pension and then gets an annual allowance reduced to the £4000 in your example, then what exactly does that mean for their pension? That only £4000 counts as that year's contribution or something else?