Australian pension scheme - eligible for carry forward?

BingoBandit

I set up a UK pension in 2017/18 and have been paying in 8k per year since then. Due to an inheritance I'm able to put the maximum 40k in this year via a director's loan to my company and use up any allowable carry forward from any previous years. This will be an additional 32k for each of the previous 2 years that I've been registered with a pension scheme.

Back in 2003/4 I was working in Australia on a temporary visa and was enroled in a superannuation pension scheme. I claimed some of the balance back when I left Australia, but a) would I still be registered on the scheme even though I haven't paid into it in years? And b) if so, would this count as a qualifying pension scheme under HMRC rules?

In other words, if I'm still registered on the Australian scheme, can I put in an extra £40k for the 2016/17 tax year to max out the previous 3 years' carry forward?

Dazed_and_confused

How much will your relevant earnings (for pension contribution purposes) be for the current tax year?

BoGoF

First of all what is the level of your earnings for the current year? The maximum you can pay is the level of your relevant earnings, regardless of any carry forward.

BingoBandit

My salary is just over 8k (I have other non-earnings income from company dividends and rental property). I'm a company director with another family member, so I understand that if the company pays in for us instead of doing personal contributions then we can put in up to 40k per year each and won't be restricted by our low relevant earnings amount.

However, the company only makes about 30-40k profit per year, so we can only max out carry forward if we're able to put in some of the inheritance money as director's loans for the company to use in paying the pensions. Our accountant says that shouldn't be a problem as the loans would be solely for business purposes (paying staff pensions) but an ex-accountant friend thinks that HMRC might have an issue with it. I'm struggling to find any definitive guidance on that point but we want to get as much of the inheritance into our SIPPs as possible. The other director has been enroled in a UK pension scheme for years, so using the full carry forward allowance isn't such an issue for him.

Dazed_and_confused

I am at a bit of a loss as to why you think you can contribute more than £8k (£6,400 plus £1,600 tax relief if paid into a relief at source scheme).

BingoBandit

The company would be paying the contributions, so it wouldn't be a relief at source scheme. We would be providing the capital to the company to make the payments. i.e. making a loan to the company to fund company expenses, in this case pension contributions.

BoGoF

HMRC will be all over a deduction for a company contribution that creates a loss for the company - which is what you are proposing doing.

BingoBandit

Ah, ok, didn't realise that. So the company can do 40k this year/next couple of years and the other director can use any available carry forward up to his 8k/year then, presumably?

Would the Australian scheme count as being registered in a qualifying pension scheme if I wanted to put in 8k for the 2016/17 year?

Dazed_and_confused

if I wanted to put in 8k for the 2016/17 year?

Unless you have access to a TARDIS you cannot contribute to a pension scheme for a tax year that had ended.

BingoBandit

If the Australian schemes are recognised by HMRC then I'd have some carry forward allowance available up to my relevant earnings from the previous 3 years, unless I've misunderstood?

Dazed_and_confused

I set up a UK pension in 2017/18 and have been paying in 8k per year since then

My salary is just over 8k

You are already paying an amount (nearly) equal to your salary so how are you going to be eligible to pay more?