How much can i put into pension with Tapered Allowance?

ender4

Hi, 

I hope someone can help with what is the maximum i can put into my pension.

Earnings for 2024/25 will be £240k (salary £100k + bonus £140k), paid through PAYE through full-time employment. The majority of that will be paid in April 2024 as a performance bonus for the year. I earned £100k in previous years.

Pension contributions, all through PAYE with employer:
21/22 - Employee £2k Employer £1k - Net pay arrangement
22/23 - Employee £2k Employer £1k - Net pay arrangement
23/24 - Employee £2k Employer £1k - Net pay arrangement
24/25 - Employee £2k Employer £1k - Salary Sacrifice

Dividends income outside of ISA's - £1k every year
Savings income outside of ISA's - £1k every year
No other income or other pension contributions.

What is my Threshold Income, Adjusted Income and is there any TAA for me?

My ideal plan would be to do a one-off AVC through work in April payroll of £140k therefore bringing me down to £100k income. So that would be £57k for 2024/25 (plus the £3k normal payments as above making £60k?), £57k for 2023/24, and £26k for 2022/23.

Is that allowed or am i breaching some limits somewhere?
Do i need to tell HMRC, the pension company, or anyone else that i am using previous years pension allowance?

Thanks for any help.

Marcon

ender4 said:

Hi, 

I hope someone can help with what is the maximum i can put into my pension.

Earnings for 2024/25 will be £240k (salary £100k + bonus £140k), paid through PAYE through full-time employment. The majority of that will be paid in April 2024 as a performance bonus for the year. I earned £100k in previous years.

Pension contributions, all through PAYE with employer:
21/22 - Employee £2k Employer £1k - Net pay arrangement
22/23 - Employee £2k Employer £1k - Net pay arrangement
23/24 - Employee £2k Employer £1k - Net pay arrangement
24/25 - Employee £2k Employer £1k - Salary Sacrifice

Dividends income outside of ISA's - £1k every year
Savings income outside of ISA's - £1k every year
No other income or other pension contributions.

What is my Threshold Income, Adjusted Income and is there any TAA for me?

My ideal plan would be to do a one-off AVC through work in April payroll of £140k therefore bringing me down to £100k income. So that would be £57k for 2024/25 (plus the £3k normal payments as above making £60k?), £57k for 2023/24, and £26k for 2022/23.

Is that allowed or am i breaching some limits somewhere?
Do i need to tell HMRC, the pension company, or anyone else that i am using previous years pension allowance?

Thanks for any help.

With earnings at this sort of level, some proper financial advice (the sort you pay for) would enable you to have answers from someone who has a full understanding of your situation and - crucially - is insured if they give you incorrect information.

Cus

Tapered allowance starts at £260k