Carry Forward all at once?

Dazed_and_C0nfused

Didn't you originally say you had used £10k in 2018:19 so you only have £30k to carry forward.

zagfles

Sounds like you understand it, you're just using odd terminology. You don't "fill" years by carrying back contributions, you carry forwards spare allowance. So this year, you use up this year's £40k first, and then you can carry forwards any spare allowance from the last 3 tax years starting with the earliest. So above looks right assuming no spare allowance in 2017/18 and the whole £40k spare in 2018/19.

You can use an AA calculator like https://www.hl.co.uk/pensions/contributions/carry-forward-rule/annual-allowance-calculator

Barry_Bear

Dazed_and_C0nfused said:

Didn't you originally say you had used £10k in 2018:19 so you only have £30k to carry forward.

Thanks zagfles and D and C! Good to know I've understood it just wrong terminology!

My OP showed the contributions table for the first period "2018 - £10,000". But maybe the way of presenting it wasn't clear. 

If you are a director of more than one company, can you use up annual allowances by receiving a company pension contribution from more than one company? Assuming you pass the "wholly and exclusively" test for both companies could company A pay £40,000 and the director counts that contribution towards the current tax year, and company B pay £40,000 and the director uses that contribution towards a prior year unused allowance? 

Company contributions are not limited to the amounts of "relevant UK earnings" (PAYE/salary taxable income, not dividends) received, only the £40,000 annual limit. But personal contributions are limited by relevant UK earnings. But am I right that even with no relevant UK earnings (i.e just dividend income) the director can make a personal contribution of £2,880 which is grossed up to £3,600? For any tax year can the director receive a company contribution of £36,400 and make a personal contribution of £2,880 (£3,600 gross) total £40,000? i.e. can the company make a payment, and the director make a payment without UK relevant earnings and gain the £1,720 government top-up in the same financial year? Or maybe there no benefit in any case (personal top-up v reduced corporation tax)?

zagfles

For DC, the pension input amount which is used for the AA is just the total of all contributions (inc RAS tax relief). It doesn't matter where it comes from.

Barry_Bear

Thanks. So a director can receive company contributions from 2 companies and he or she can also in the same year make a personal contribution up to £3,600 without any salary income? I hope this is right. Not sure about the jargon in the pension industry! DC? (defined contribution?) Is that a SIPP? AA (annual allowance?). RAS no idea! 

Dazed_and_C0nfused

Defined contribution and yes a SIPP would be DC not DB (defined benefit).

Annual allowance

Relief at source (one of the 3 methods an individual can use to contribute)

Barry_Bear

Thanks D and C!