Use of previous year's allowances.

mfox999

Hello, I am currently taking advantage of the ability to use up tax allowance on pension payments from the previous three tax years. However, I may yet use up the full allowance from this year and the remainder of the allowance from three years ago. I have a further two years (last year and year before) where I have allowance left. Can I use that this year, or can I only use allowance from the year three years past?

Dazed_and_C0nfused

You might want to read your post back and clarify exactly what you mean as it is a little confusing.

Albermarle

I think the OP means that after using up this years £40K and unused allowance from three years ago , can they also start to use unused allowance from two and one years ago , this year . I think the answer is yes .

OP - So many posters are confused about this issue , so I have to ask . Will you have sufficient taxable earnings this tax year to cover what must be quite a large contribution you are planning ?

mfox999

Thank you, Albemarle has summed it up correctly. I have been fortunate enough to be earning a significant amount from some contract work this tax year and I am able to live (survive?) on minimum wage. I want to take full advantage of this to boost my pension savings through the remainder of this tax year and next. I have another year of work I can plan on. I will be exceeding this years allowance and the remainder of my FY17-18 allowance before the end of this year. I could offset this by increasing my pay today. However, I know that if I did do that, it would be eaten up rather than saved and I need to boost my pension pot.