Planning for Pension Contributions 2023/2024

zagfles

Spicy21 said:

Thanks for all your help, I think I’ve got it now!

2023/2024
Relevant earnings £60,000 
My pension contributions via salary £4331.39
My pension contributions via lump sum outside payroll/gross £42,900
Total work pension contributions £47,231.39

Amount of relevant earnings left £12,768.61
So maximum of £10,214.89 that can be put into private RAS pension.

No benefit to paying in anything over my relevant earnings as no tax relief possible above this limit and essentially I would end up paying tax twice as already taxed income invested in my pension above my relevant earnings for the year would be taxed again when I draw my pension.

Sounds right. You'll exceed the AA but you have carry forwards available, obviously if you carried on doing this in future years you'll run out of carry forwards so will need to reduce contributions to avoid an AA charge.