Backdated Pension Contributions

Black_Cat2

Hi all

After confirmation that I am understanding the process of paying previous years pension contributions correctly? 

I think I can pay additional contributions to my pension for the last three years if I haven't exceeded my gross income for that year.   

So on a salary of £14,000 does that mean as follows:

2019/20 total contributions made to pension was £4000 (£10,000 not used) 
2020/21 total contributions made to pension was £8000 (£6000 not used) 
2021/22 total contributions made to pension was £10,000 (£4000 not used) 

2022/23 current year - I can contribute £14,000 (max salary) plus £20,000 (last 3 years) = £34,000?

Thanks 😺

xylophone

https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/carry-forward#:~:text=Carry forward allows you to make use of any annual,that need to be met.

In addition, to receive tax relief on your contributions, you must earn at least the amount you wish to contribute in the tax year you are making the contribution for. So if you, for example, want to make total contributions of £100,000 you must earn at least £100,000 in that tax year. This doesn’t apply if your employer is making the contribution on your behalf. 

Dazed_and_C0nfused

You cannot pay pension contributions for a tax year that has ended.

You can, in certain circumstances, carry forward unused annual allowance which allows you to pay more in the current tax year.  And any tax relief due will be by reference to your tax position in the current tax year, not any previous tax years.

If you expect to earn £14,000 in this tax year then carry forward is almost certainly irrelevant.

Black_Cat2

Thank you both 🐈