SIPP Question - Carry Forward maximising allowance

Jonesy1977

Hi All, 

I am a business owner and my business partner and I set up a SIPP for company pension contributions.  Over time we purchased (through the SIPP) our business premises and pay rent to the SIPP.  We also make monthly contributions to invest.  My question relates to carry forward allowance, I am trying to work out how much carry forward allowance we will have - the last three years we have increased our monthly contributions but we have not come close to the (£40K) annual allowance until this year, we will have profit to allow us to make one off payments, possibly to utilise the allowance in the previous years.

Question 1 - Is the "year" the company accounts year (oct-Nov) or personal tax year?
Question 2 - We have no IFA attached to the SIPP so for advice purposes I am not sure if I need to fill in any forms etc to carry forward allowances?

Any advice gratefully recieved!

Linton

Q1 - pension allowances relate to tax years and personal taxation.  I know nothing about company taxation however I believe that if your company overpays your pension you as the pension holder will suffer the consequences rather than your company.
Q2 - you dont need to tell any one about use of carry forward.  Just keep the details for a few years *(7?) in case HMRC query it.

dunstonh

Question 1 - Is the "year" the company accounts year (oct-Nov) or personal tax year?

It is tax year.  It is nothing to do with the company as the contribution allowance is personal.

Question 2 - We have no IFA attached to the SIPP so for advice purposes I am not sure if I need to fill in any forms etc to carry forward allowances?

You keep records of your contributions to give to HMRC if they ask for them.  HMRC automate the checks on pension contributions and can identify those that have got it wrong.  Although it takes the best part of 2-3 years after the event for them to be able to reconcile it correctly.

Jonesy1977

Thank you, I suspect the accountant was thinking about corporation tax implications relating to the financial year.  Your responses are very helpful.  The Sipp provider send statements annually and I can download to give proof if needed. 

Hopefully I can max out my allowance over three years..............I have a feeling I may need more in retirement than originally planned!