Pension Carry Forward

GlasgowExpat2

My understanding is that you can backdate pension contributions from the previous three years but you had to be a member of a pension scheme during that time - is that correct?

My company pension plan documents says the plan start date was 01 April 2023 but my pay date was 28 April.  Does that mean I can use the 2022/23 allowance?  Foolishly I wasn’t a member of the pension scheme until April 2023. 

NoMore

Any other pensions you were a member of in that time ? You don't have to be a member of the pension you wish to contribute to, any previous pension that qualifies will count.

GlasgowExpat2

NoMore said:

Any other pensions you were a member of in that time ? You don't have to be a member of the pension you wish to contribute to, any previous pension that qualifies will count.

I have pensions from previous employers - would they count?

wjr4

How much is your gross income?

Dazed_and_C0nfused

GlasgowExpat2 said:

My understanding is that you can backdate pension contributions from the previous three years but you had to be a member of a pension scheme during that time - is that correct?

My company pension plan documents says the plan start date was 01 April 2023 but my pay date was 28 April.  Does that mean I can use the 2022/23 allowance?  Foolishly I wasn’t a member of the pension scheme until April 2023. 

You can never back date pension contributions.

Unused annual allowance from earlier years can (sometimes) be used to let you pay more in the current tax year.

GlasgowExpat2

wjr4 said:

How much is your gross income?

Salary is £30k.  I also have rental income, assume that wouldn’t count?

GlasgowExpat2

Dazed_and_C0nfused said:

GlasgowExpat2 said:

My understanding is that you can backdate pension contributions from the previous three years but you had to be a member of a pension scheme during that time - is that correct?

My company pension plan documents says the plan start date was 01 April 2023 but my pay date was 28 April.  Does that mean I can use the 2022/23 allowance?  Foolishly I wasn’t a member of the pension scheme until April 2023. 

You can never back date pension contributions.

Unused annual allowance from earlier years can (sometimes) be used to let you pay more in the current tax year.

Sorry used the wrong terminology. I meant unused annual allowance 

Dazed_and_C0nfused

GlasgowExpat2 said:

wjr4 said:

How much is your gross income?

Salary is £30k.  I also have rental income, assume that wouldn’t count?

Where does using unused annual allowance from previous years come into it then?

You have still got £30k of this year's allowance (less any employer contributions) to use before carry forward is relevant.

NoMore

GlasgowExpat2 said:

NoMore said:

Any other pensions you were a member of in that time ? You don't have to be a member of the pension you wish to contribute to, any previous pension that qualifies will count.

I have pensions from previous employers - would they count?

Yes, assuming they are UK recognised schemes.  However you need to understand how carry forward works and how you can best utilise it, so pay attention to Dazed_and_confused and wjr4 comments.

Almost everyone seems to misunderstand this and end up realising they can't really take advantage of it. 

GlasgowExpat2

Dazed_and_C0nfused said:

GlasgowExpat2 said:

wjr4 said:

How much is your gross income?

Salary is £30k.  I also have rental income, assume that wouldn’t count?

Where does using unused annual allowance from previous years come into it then?

You have still got £30k of this year's allowance (less any employer contributions) to use before carry forward is relevant.

I’m in the process of selling my BTL so was going to put some of the proceeds into my pension (I’m 60 and looking to retire in 2-3 years)

Dazed_and_C0nfused

GlasgowExpat2 said:

Dazed_and_C0nfused said:

GlasgowExpat2 said:

wjr4 said:

How much is your gross income?

Salary is £30k.  I also have rental income, assume that wouldn’t count?

Where does using unused annual allowance from previous years come into it then?

You have still got £30k of this year's allowance (less any employer contributions) to use before carry forward is relevant.

I’m in the process of selling my BTL so was going to put some of the proceeds into my pension (I’m 60 and looking to retire in 2-3 years)

Having the funds is the easy part.

Being eligible to use carry forward less so.

Have a read of this.

https://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/carry-forward/