Can I use carry forward?

Hey guys,
I'm drawing my info together for my annual tax return and I have notice I forgot to contribute to my pension!

I can only contribute £2880 as I don't have any employment and 'conventional' income from a salary.

Obviously a bit annoying as I miss our on the ~£700 odd from the government!..

Am I able to pay double this year, so, 5760?

* Again I won't have income in the form of a salary.
* Income from dividends and savings interest will be more than the 5,760

I have been in the same scheme for ages, at least 2014 when it moved from one provider to another. (this is a Scottish Widows pension from a former workplace)

Any help much appreciated 

Comments

  • SVaz
    SVaz Forumite Posts: 39
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    As far as I know, you can’t because people have to have used their whole allowance (£60k) ) from employment / self employment,  before using carry over. 
  • SVaz
    SVaz Forumite Posts: 39
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    Set up a direct debit so you don’t forget for this current tax year 😉
  • ChilliBob
    ChilliBob Forumite Posts: 1,969
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    SVaz said:
    As far as I know, you can’t because people have to have used their whole allowance (£60k) ) from employment / self employment,  before using carry over. 
    I thought the whole allowance was capped at either £60k or whatever your annual salary is - e.g. if you earn £25k your max is this, not 60.. if I don't earn anything then I can use my whole allowance (2.88k)... perhaps
  • NoMore
    NoMore Forumite Posts: 842
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    edited 11 September at 11:09AM
    Your AA is still 60k, however you can't get any tax relief on anything above 2880 (3600 gross) so its not worth paying anymore into a pension. It's two separate things, so no you can't use carry forward as said because your not paying more than 60k in to the pension
  • Doctor_Who
    Doctor_Who Forumite Posts: 832
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    ChilliBob said:
    Hey guys,
    I'm drawing my info together for my annual tax return and I have notice I forgot to contribute to my pension!

    I can only contribute £2880 as I don't have any employment and 'conventional' income from a salary.

    Obviously a bit annoying as I miss our on the ~£700 odd from the government!..

    Am I able to pay double this year, so, 5760?

    * Again I won't have income in the form of a salary.
    * Income from dividends and savings interest will be more than the 5,760

    I have been in the same scheme for ages, at least 2014 when it moved from one provider to another. (this is a Scottish Widows pension from a former workplace)

    Any help much appreciated 
    Dividend and savings interest aren't 'relevant income' for pension tax relief. If you have zero 'relevant income' then you can contribute £3600 gross (£2880 net) and receive £720 tax relief each tax year. Carry forward can only be considered if you want to contribute more than the £60K AA and you have enough earned income in the current tax year (i.e. more than £60K).

    https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100#earnings
    'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.
  • ChilliBob
    ChilliBob Forumite Posts: 1,969
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    Ah that's bad new, oh well, just goes to show I must be more on the ball this tax year! 
  • Doctor_Who
    Doctor_Who Forumite Posts: 832
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    ChilliBob said:
    Ah that's bad new, oh well, just goes to show I must be more on the ball this tax year! 
    Yes - I tend to do my £2880 net/£3600 gross pension contribution at the start of the tax year (same with £20K ISA subscription) to get it out of the way! 
    'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.
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