The Annual Allowance (AA) is the amount that can be paid each year into your pension with tax relief.
You should understand what the reduction to the AA might mean for you, so please read the AA Guide to help you work out if you’re affected, and if so, how and what you can do about it.
A quick check is to add your taxable income together including annual salary, allowances, benefits in kind and any bonus you received from Sainsbury’s this tax year. Remember to take into account any bonus shares vesting in March and include this as part of your taxable income amount.
- If your total is more than £110,000, you may be affected.
- If your total is more than £150,000, you will be affected.
- If you total is more than £210,000, then you should take action.
The guide takes you through the calculations, providing details of what you need to do and where to go if you need to take action.