Annual Allowance Pensions Saving (NHS 1995 Scheme)- some guidance please?

crv1963

I requested a AA Pension Savings Statement to try to work out what if any AA I had to carry forward to save as much as I can into a separate SIPP.

Brief background-

I reached Scheme NRA in October 2018, my anniversary date is 13/09 annually- I joined the scheme in September 1985. I had a brief break in service May 2011- October 2013, but re-joined it under the original terms and conditions as per scheme rules having less than 5 years break. My starting salary in October 2013 was less than my finishing salary in May 2011 as I left 2011 from a senior role and re-joined in a lower banding clinical role in October 2013. Therefore my pension accrued to May 2011 was "preserved" at my old higher banding and my restarted contributions were based on my new banding level. In April 2012 my pension was subject to a "Pension Sharing Order" on divorce so 40% of my notional "pot" was transferred to my now ex-wife. 

I then in August 2018 started a new clinical role which also paid enhanced hours payment. I duly worked the full range of unsocial hours, mainly but not exclusively night shifts, lots of weekends and bank holidays. I then retired this year on 30 April, I get 15k pa NHS Pension. I then re-joined NHS 2 May- same post, same incremental level, same Team although I have had a few months seconded to another Team and am going there a again in the next few weeks for a further secondment to provide cover for a few more months.

I now get my NHS Pension and NHS Salary. I started contributing £1k per month to a SIPP in June 2020, am contributing to the NEST pension via payrole (5% my salary). I have tried working out any AA I can carry forward and have been sent the following tables of my Personal Input-

Pension Input              Pension Input                 Standard AA                   Pension Input Amount (Growth)
Period Start                 Period End                      Across all schemes        in the 1995 NHS Pension Scheme

06/04/19                        05/04/20                           £40,000                              £60, 307

followed by

Carry Forward Tax Years

Pension Input              Pension Input                      AA                                   Pension Input Amount (Growth) in the
Period Start                 Period End                                                                  1995 NHS Pension
06/04/18                        05/04/19                               40k                                  £55,497.69
06/04/17                        05/04/18                               40k                                  £16,436.81
01/04/16                        05/04/17                               40k                                  £0.00

and finally

Opening and closing values
Pension Input               Pension Input                 Opening Value (adjusted         Closing Value
Period Start                  Period End                      with inflation)                                                    
06/04/19                        05/04/20                            £254,494.02                               £314,801.89
06/04/18                        05/04/19                            £193,031.63                               £248,529.32
06/04/17                        05/04/18                            £170,972.54                               £187,409.35
06/04/16                        05/04/17                            £205,548.84                               £169,279.74

So in trying to work out if I have any AA I can use going forward am I correct in my working out the following-
Tax year 2016-17 had no growth so 40k allowance available, then 2017-18 of my 40 k allowance used 16,436.81 so allowance left is £23,563.19 so a running total of 63,563,19 available?

Then the tricky part exceeded 2018/19 by £15,497.69 which could be covered by the previous tax years above? As can the period 2019/20 when my increase exceeded the AA by £20,307.87? as 2018/19+ 2019/2020 excess totals £35,805.56. 

Then do I have a problem that my pension growth in 2018/19 and 2019/20 are both larger sums than I earned in those years? So do I need to contact HMRC and see if I owe them tax? My plans for this tax year were to contribute around £150 pm NEST (as I also get my employer contribution and around £2000 pm SIPP both from Net Pay so for NEST around £3000 gross and SIPP £30k gross total 33k and if I had the chance top SIPP up by another 6k gross to bring pension total contributions to 39k.

Are my calculations wildly inaccurate or would I be better seeing a Tax Advisor? 

Any help would be appreciated.

zagfles

Unless you're subject to the AA taper (did you ever earn £110k+?),  it looks like you're OK, annual allowance carry forwards uses the earliest tax year first, so the approx £15.5k carry forwards you need for 18/19 will come out of 16/17, or even 15/16 if you had spare then, you haven't posted the figures. Then you have plenty more for 19/20 carry forwards. Can use a calculator like this: https://www.hl.co.uk/pensions/contributions/carry-forward-rule/annual-allowance-calculator .  Enter the PIA for "contributions".

Re your question "Then do I have a problem that my pension growth in 2018/19 and 2019/20 are both larger sums than I earned in those years?" makes no sense. Unless you've been confused by the sort of drivel you sometimes read that tries to combine the personal tax relief limit (100% of earnings) with the annual allowance? There's nothing wrong with your PIA being more than your earnings.

There is a separate limit on tax relief that applies to personal/employee contributions eg if you had £30k of taxable earnings after any conts to your workplace scheme, you can only get tax relief of £30k gross (£24k net) of SIPP contributions. But this is nothing to do with the annual allowance.

crv1963

Thank you zagflies, in answer no I've never earned £110k+, I didn't post earlier annual figures because I have only been sent these ones. I have run my figures through the calculator you kindly posted a link to. I tells me that I can contribute a maximum of £63,563.19 to April 2021. Which means I can in fact contribute the sums I had hoped to this year. 

I still don't quite understand how the figures are calculated, but I do understand that I seem to be within the rules- I can't afford to contribute up to my maximum available sum so will stick to my plan of putting in 39k this year, as my base salary covers that. I'll use my enhanced earnings allowance, overtime and pension for living expenses.