Pension Input Amount calculations

Sarahspangles

I need to calculate, and at some point probably recalculate…, my (NHS) Pension Input Amounts from 2021/22 to 24/25. In 2023/24 I definitely exceeded the Annual Allowance so I need to use Carry Forward from 2020/21 and later. 

There is a ready reckoner https://www.nhsemployers.org/readyreckoner (for 2023/24 only) plus this advice including a calculation method for other years https://www.nhsbsa.nhs.uk/sites/default/files/2022-08/Process%20for%20calculating%20the%20Annual%20Allowance-20220824-%28V5%29%20.pdf

However when I tried both for 2023/24 I got a different answer. I’d like to try another calculator as I suspect I’m making a silly mistake, can anyone suggest one?  

Milltir

HMRC calculator? https://www.tax.service.gov.uk/pension-annual-allowance-calculator?_ga=2.174575461.698485834.1712522535-781016844.1712522535

Malthusian

Ask NHS Pensions for a "pension savings statement".

Sarahspangles

In case it’s useful for anyone finding this thread I’ve established that the Pension Savings Statement(s) I need from NHSBSA are ‘on demand’ ones. The earliest I can request these is October, after the statutory ones have gone out. They may not be back with me until the New Year.  This isn’t helpful in my scenario which is working out how much I can contribute to my SIPP. I assume it works for people making a settlement of their Annual Allowance Charge.

MX5huggy

@Sarahspangles you have till the end of the tax year 05/04/2025 to make SIPP contributions.

Sarahspangles

MX5huggy said:

@Sarahspangles you have till the end of the tax year 05/04/2025 to make SIPP contributions.

Yes, but in the meantime it isn’t invested. I also hoped to get my higher rate tax payments returned within the tax year and stay within the personal savings allowance. Then retire at the end of the year knowing I have a 1257L tax code next year. I’m being fussy

Tommyjw

Sarahspangles said:

In case it’s useful for anyone finding this thread I’ve established that the Pension Savings Statement(s) I need from NHSBSA are ‘on demand’ ones. The earliest I can request these is October, after the statutory ones have gone out. They may not be back with me until the New Year.  This isn’t helpful in my scenario which is working out how much I can contribute to my SIPP. I assume it works for people making a settlement of their Annual Allowance Charge.

You can request this now they have to provide it by the later of 3 months from now or 6 October ( so 6 October basically). There is no requirement to wait to October to ask for it.

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm167300 

Sarahspangles

Tommyjw said:

Sarahspangles said:

In case it’s useful for anyone finding this thread I’ve established that the Pension Savings Statement(s) I need from NHSBSA are ‘on demand’ ones. The earliest I can request these is October, after the statutory ones have gone out. They may not be back with me until the New Year.  This isn’t helpful in my scenario which is working out how much I can contribute to my SIPP. I assume it works for people making a settlement of their Annual Allowance Charge.

You can request this now they have to provide it by the later of 3 months from now or 6 October ( so 6 October basically). There is no requirement to wait to October to ask for it.

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm167300 

I’m being told by payroll that in theory I can request this but that in practice most years NHSBSA advise they cannot achieve the deadline!

Sarahspangles

Sarahspangles said:

Tommyjw said:

Sarahspangles said:

In case it’s useful for anyone finding this thread I’ve established that the Pension Savings Statement(s) I need from NHSBSA are ‘on demand’ ones. The earliest I can request these is October, after the statutory ones have gone out. They may not be back with me until the New Year.  This isn’t helpful in my scenario which is working out how much I can contribute to my SIPP. I assume it works for people making a settlement of their Annual Allowance Charge.

You can request this now they have to provide it by the later of 3 months from now or 6 October ( so 6 October basically). There is no requirement to wait to October to ask for it.

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm167300 

I’m being told by payroll that in theory I can request this but that in practice most years NHSBSA advise they cannot achieve the deadline!

Pleased to say it arrived today.  Less pleased I now have to do maths.....

hugheskevi

You say you breached in 2023/24. That means you carry-forward unused allowance from 2020/21, 2021/22 and 2022/23 to mitigate the breach, starting with the earliest year.

Note that if you also breached in 2021/22 or 2022/23 then you may need figures from years before 2020/21, to determine which years used which carry-forward. 

Sarahspangles

hugheskevi said:

You say you breached in 2023/24. That means you carry-forward unused allowance from 2020/21, 2021/22 and 2022/23 to mitigate the breach, starting with the earliest year.

Note that if you also breached in 2021/22 or 2022/23 then you may need figures from years before 2020/21, to determine which years used which carry-forward. 

Thanks! Maths now done and I have used some of 2020/21's AA. I have plenty to cover any breach this year in 2022/23's AA.

It looks like I have messed up though. I contributed £2.2k more than my taxable income last year. My April '24 pay packet included £8.4k arrears, but this falls in the wrong tax year. I'll double check my workings again tomorrow.