Travel Pass and 20% contribution limit

S

stuffit

Registered User
Messages
36
Salary is 50K

I'm allowed contribute 20% of my gross salary to pension fund each year.

Every year I purchase an annual train ticket for 1600 EUR.
This is bought via the Tax Saver travel scheme.
And is paid for by salary sacrifice.

So is 20% contribution limit based on 50,000 salary or 48,400 salary?


Stephen
 
AFAIA it is based on the gross salary per your P60. This includes Profit Share if taken in cash, Notional pay, BIK etc but excludes Tax Saver travel scheme.
Your final salary for max pension allowed by revenue is also based on your p60 so you need to be aware on this when coming to retirement. won't happen for at least 25 years in your case i.e. in final year don't use the travel save scheme.
 
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