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  • FIRST POST
    • EricTheKing7
    • By EricTheKing7 7th Jan 18, 12:35 AM
    • 21Posts
    • 9Thanks
    EricTheKing7
    Can I contribute to last year's pension
    • #1
    • 7th Jan 18, 12:35 AM
    Can I contribute to last year's pension 7th Jan 18 at 12:35 AM
    Last year I was fortunate to earn enough to put me into the 40% tax bracket but I was not educated enough to benefit from increasing my pension contributions. I'm a basic rate tax payer again this year so am wondering if there is any way I can still take advantage of last year's allowance before I complete my self assessment forms, I know I can carry forward previous unused allowances but I'm assuming I won't benefit from this unless I'm a 40% tax payer again?
    Thanks in advance.
Page 1
    • kidmugsy
    • By kidmugsy 7th Jan 18, 12:42 AM
    • 9,974 Posts
    • 6,728 Thanks
    kidmugsy
    • #2
    • 7th Jan 18, 12:42 AM
    • #2
    • 7th Jan 18, 12:42 AM
    Sorry, it's use it or lose it.
    Free the dunston one next time too.
    • marlot
    • By marlot 7th Jan 18, 7:15 AM
    • 3,203 Posts
    • 2,333 Thanks
    marlot
    • #3
    • 7th Jan 18, 7:15 AM
    • #3
    • 7th Jan 18, 7:15 AM
    I believe you can make a contribution to charity after the tax year has ended (but before 31 January).

    https://www.gov.uk/donating-to-charity/gift-aid

    It doesn't help your pension, but does help good causes!
    • EricTheKing7
    • By EricTheKing7 7th Jan 18, 4:07 PM
    • 21 Posts
    • 9 Thanks
    EricTheKing7
    • #4
    • 7th Jan 18, 4:07 PM
    • #4
    • 7th Jan 18, 4:07 PM
    Thanks for the replies, even though it's not really what I was hoping to hear. I was also considering consolidating 4 pensions into a SIPP but I think I've just demonstrated my lack of pension knowledge would mean that would be a bad idea.
    • EricTheKing7
    • By EricTheKing7 7th Jan 18, 9:43 PM
    • 21 Posts
    • 9 Thanks
    EricTheKing7
    • #5
    • 7th Jan 18, 9:43 PM
    • #5
    • 7th Jan 18, 9:43 PM
    A final question (as I desperately try to cling on to the hope of using last years allowance). Hypothetically, if I had received an unexpected bonus on 30th of March 2017, let's say £20k which brings my usual salary up from £30k to £50k, is it reasonable to expect me to make suitable pension contributions before 5th April 2017? My hope is that it isn't considered reasonable and you may be allowed to address it up until you filed your tax return - am I clutching at straws or is there an element of hope with this scenario?
    • BoGoF
    • By BoGoF 7th Jan 18, 9:45 PM
    • 2,838 Posts
    • 2,081 Thanks
    BoGoF
    • #6
    • 7th Jan 18, 9:45 PM
    • #6
    • 7th Jan 18, 9:45 PM
    You are very much clutching at straws, the chance has gone.
    • EricTheKing7
    • By EricTheKing7 9th Jan 18, 4:18 PM
    • 21 Posts
    • 9 Thanks
    EricTheKing7
    • #7
    • 9th Jan 18, 4:18 PM
    • #7
    • 9th Jan 18, 4:18 PM
    Thanks BoGoF, I'll just have to accept I need to educate myself more financially. And this site is always a great help.
    • michaels
    • By michaels 9th Jan 18, 4:26 PM
    • 20,136 Posts
    • 92,799 Thanks
    michaels
    • #8
    • 9th Jan 18, 4:26 PM
    • #8
    • 9th Jan 18, 4:26 PM
    A final question (as I desperately try to cling on to the hope of using last years allowance). Hypothetically, if I had received an unexpected bonus on 30th of March 2017, let's say £20k which brings my usual salary up from £30k to £50k, is it reasonable to expect me to make suitable pension contributions before 5th April 2017? My hope is that it isn't considered reasonable and you may be allowed to address it up until you filed your tax return - am I clutching at straws or is there an element of hope with this scenario?
    Originally posted by EricTheKing7
    You definitely didn't receive the money this tax year?
    Cool heads and compromise
    • EricTheKing7
    • By EricTheKing7 10th Jan 18, 6:08 PM
    • 21 Posts
    • 9 Thanks
    EricTheKing7
    • #9
    • 10th Jan 18, 6:08 PM
    • #9
    • 10th Jan 18, 6:08 PM
    Sadly not michaels, I received the 'bonus' in Nov/Dec 2016 when exercising emi shares. The company accountant (more than) implied I would have to pay full tax on the bonus and that pensions contributions wouldn't be of benefit. I should have sort financial advise at the time but I was just too naive. We live and learn.
    • pennystretcher
    • By pennystretcher 12th Jan 18, 3:32 PM
    • 341 Posts
    • 1,369 Thanks
    pennystretcher
    https://www.gov.uk/tax-employee-share-schemes/enterprise-management-incentives-emis

    That article seems to indicate that the tax on selling the EMI shares is CGT, not income tax?
    So check your self assessment guidance, I reckon you may have to report the shares in different section than your normal income, which might actually keep you in the basic rate category.
    Last edited by pennystretcher; 12-01-2018 at 3:37 PM.
    MFW Jan 2018 £190 (almost there!!!)
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