Definitions for "Net Relevant Earnings"
Keywords:  nre, pension, paye, bonuses, taxable
Net Relevant Earnings are used to determine the maximum contributions to a Retirement Annuity, Personal Pension or Stakeholder Pension. Net Relevant Earnings are your relevant earnings less - allowances deductible for tax in relation to business purposes e.g. some capital allowances; stock relief (only for tax years prior to 1984/85) losses from business Please note that mortgage interest, personal tax relief and other allowances are not deducted. The calculation of net relevant earnings for any individual case should be referred to a suitably qualified person, such as an accountant or the local tax inspector.
These are the earnings of self-employed people or earnings of people who are not in an employer's pension scheme. Net relevant earnings are used to work out the highest amount which can be invested in a pension scheme and qualify for tax relief.
Your taxable earnings from your selfemployment, or from an employment where you are not a member of your employer's pension scheme. You may make contributions to a retirement annuity contract or personal pension plan, up to a percentage of your net relevant earnings. The percentage limits are based on your age, and differ between retirement annuity contracts and personal pension plans.