Pension Savings Statement

swanny65

Would someone be good enough to check my following calculations and confirm whether, while getting a PSS, i will not have a tax charge to pay.

I have been a member of the Civil Service Pension scheme since December 1984. I have 30 years in classic and moved to alpha in July 2015.

In October 2017 I was promoted and my salary went from £26K to £43K, hence the issue of the PSS.

Tax year 2017/18, due to my promotion, my PSS had growth in pension savings of £43498.78 (classic) and £13058.44 (alpha). The excess over the £40K allowance i could offset against 2014/15 where i had pension input of £4676.37 (classic) and £0.00 (alpha).

The past tax year 2018/19 I have received another PSS. The growth in pension savings are £63935.54 (classic) and £16135.96 (alpha). I need to be able to offset the excess of £40071.50 against unused allowance in 2015/16 and 2016/17 (2017/18 has been used as per the paragraph above).

For 2015/16 and 2016/17 i had pension inputs of £4791.21 (classic)/£6675.20 (alpha) and £2513.51 (classic)/£10136.80 (alpha). As my total pension inputs for 2015/16 and 2016/17 are £24116.72 I will have £55883.28 unused allowances for these two tax years. This allows me to offset the 2018/19 excess of £40071.50 and i have no tax liability.

Fingers crossed as i have now had a PSS based on a complete year of my new higher salary I will be OK next tax year as the difference my pension benefits will be far less.

I should add i also pay an AVC of £50 a month but this £600 a year will not adversely affect the overall outcome of the above calculations.

Many thanks

midlandsimon

The revenue have a very useful calculator for this- hmrc. gov.uk/tools/pension-allowance/index.htm

swanny65

Perfect....

Thanks very much