How much can I pay into my Pension?

The maximum pension contribution that can be paid into all your pensions in this tax year ending 5 April 2020 is £40,000.

This is known as the standard Annual Allowance.

Your pension contribution includes any personal contributions, employer contributions and any contributions paid by someone else. It also includes tax relief.

If you’re a member of a defined benefit or final salary company pension scheme your pension administrator will provide for your ‘pension input amount’ for the current tax year.

Remember that for personal contributions, you only receive tax relief on 100% of your earnings.

‘Earnings’ doesn’t include dividend income or rental income. So when we work with business owners on a low salary and dividends we consider company contributions. See our popular article Dividends and Pensions for more information on this.

Circumstances where your Annual Allowance might be lower:

If your ‘adjusted income’ is more than £150,000 your allowance could be as little as £10,000. This is because you will be subject to the Tapered Annual Allowance.

If you’ve taken flexible income from any of your pensions your allowance will be £4,000. This is because you will be subject to the Money Purchase allowance.


Call 0117 290 0370 if you’d like to find out more about how we work with business owners. Ask to book a free 20 minutes telephone consultation with Hilary Carden.

Alternatively drop us an email to:

More Reading:

Dividends and Pensions

What is Carry Forward?

Important Risk Warnings:

This article and the information on this website is not personal advice. It’s only intended to give you a brief summary or highlight a particular issue for you to investigate further. It is based on our current understanding of legislation and HMRC guidance which can change. Correct as at April 2019. If you’re in any doubt whether a particular course of action is suitable for your circumstances, you should seek professional advice. Tax rules can change and any benefits depend on individual circumstances. And, if you are unsure any reliefs are applicable to you, you should consult your accountant or HMRC.

The value of investments and any income from them can fall as well as rise and this means that you could get back less that you put in. Past performance is not a guide to the future. It cannot provide a guarantee of the future returns of a fund.

  • Hillary Carden

    Hilary is a force to be reckoned with in the pensions field. She founded Cardens in 1993 and Cardens Pension Trustees Ltd in 1995 and became one of the first women to become a Registered Life Planner® and with 30+ years experience of advising on and managing pension schemes, she really is an expert in retirement and financial planning.

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