3 year cfwd rule

Mick70

If i would like to pay an extra couple of thousand into my pension (prob 5k) , do i contact my pension provider to find out how much allowance I have from prior years ?
2019/20  - unsure exact figure, but approx 15k
2020/21  - 40k
2021/22 - 40k
2022/23 -  hoping to reach 40k  , but wondering if i can contribute more ?  , if not the 5k bonus will go in the bank towards pension savings still.

many thanks 
Mick

Dazed_and_C0nfused

I think you have to work that out yourself. 

You could have 10 providers, none of which would know the full picture.

hugheskevi

Speak with all your pension providers over the last few years to obtain pension input amounts for the last 3 years by asking them for Pension Saving Statements. Add together all the individual pension inputs to get your total pension input for each year,

Also, gather details of your threshold and adjusted income and check whether you are subject to the Money Purchase Annual Allowance.

Then use the HMRC calculator to determine the amount of carry-forward available. 

dunstonh

If i would like to pay an extra couple of thousand into my pension (prob 5k) , do i contact my pension provider to find out how much allowance I have from prior years ?

Providers will not calculate your annual allowance for you. That falls under advice.  They can provide you with the total contributions in a year.   Although you should know that anyway for what is supplied to you.

Mick70

its the one provider for those particular years,  prior to that was in a db pension

I am just curious - IF they were the correct figures,  does it mean I have £25k extra i could, in theory, extra pay into 22/23 ?  so could have contributions totalling £65k into 22/23 ?   or not ? 

Albermarle

Mick70 said:

its the one provider for those particular years,  prior to that was in a db pension

I am just curious - IF they were the correct figures,  does it mean I have £25k extra i could, in theory, extra pay into 22/23 ?  so could have contributions totalling £65k into 22/23 ?   or not ? 

Yes that would be OK . Just to be clear, the figures must include your contributions + your employer contributions + any tax relief added.

hugheskevi

Mick70 said:

its the one provider for those particular years,  prior to that was in a db pension

I am just curious - IF they were the correct figures,  does it mean I have £25k extra i could, in theory, extra pay into 22/23 ?  so could have contributions totalling £65k into 22/23 ?   or not ? 

Yes, in terms of Annual Allowance.

To get tax relief on contributions, you must have earnings that attract relief of at least the amount contributed (ie in this case that is probably earn at least £65,000). If taxable income would be reduced significantly, things like minimum wage (for salary sacrifice) and type of contribution method become important too (if contribution would result in you not paying any income tax).

Not relevant here, as the earliest year would be lost if not used this year, but it can be useful to not use all available Annual Allowance in one go, to maximise tax relief over a number of years rather than just in a single year which may not be so efficient (depending on individual circumstances).

Albermarle

To get tax relief on contributions, you must have earnings that attract relief of at least the amount contributed (ie in this case that is probably earn at least £65,000). If taxable income would be reduced significantly, things like minimum wage (for salary sacrifice) and type of contribution method become important too (if contribution would result in you not paying any income tax)

I assumed that Mick 70, having asked many previous questions about pensions would be aware of that, but yes always best to clarify to be sure .

Mick70

Albermarle said:

Mick70 said:

its the one provider for those particular years,  prior to that was in a db pension

I am just curious - IF they were the correct figures,  does it mean I have £25k extra i could, in theory, extra pay into 22/23 ?  so could have contributions totalling £65k into 22/23 ?   or not ? 

Yes that would be OK . Just to be clear, the figures must include your contributions + your employer contributions + any tax relief added.

Yes includes everything , found the statements for  19/20, 20/21, 21/22.
 I was just u sure at first if you went as far back as 19/20 if wanting to pay extra into 22/23 year 

Grumpy_chap

What you don't use from 2019/20 by the end of 2022/23 is lost forever.  Current year is used first, then the oldest year available.

sheslookinhot

Mick70 said:

its the one provider for those particular years,  prior to that was in a db pension

I am just curious - IF they were the correct figures,  does it mean I have £25k extra i could, in theory, extra pay into 22/23 ?  so could have contributions totalling £65k into 22/23 ?   or not ? 

Only if you have £65k of earned income.