Pension Annual Allowance

evie2468

Secret2ndAccount said:

Okay, let me try this a different way. You have asked one question and I will answer it.

evie2468 said:

1)       As I have not earned enough to pay the full £60,000 annual allowance into a sipp I cannot carry forward.

OR

2)      I have used 100% of MY annual allowance and so I can carry forward unused annual allowance amounts from 3 previous years.

Who is correct?  Thanks in advance.

1) This is a good one line summary of how most people would see things. However, if analysed to a pedantic level of detail, it's not correct (see my post above).  
2) Your annual allowance for this year is 60k, and you haven't used it all, so this statement is incorrect.

We are still left guessing as to what it is you would like to achieve, so I'm going to take a guess. I'm guessing you would like to pay a large amount into your pension, and get a large amount tax relief. If this is the case, the only thing you need to know is that you can only get tax relief to the extent of your earnings this tax year. At your salary level, AA and carry forward (and your PIA) are unlikely to be of any concern to you.

Yes thanks. Finishing work so sorting out pension. I want to put into a sipp what I am allowed and I can roughly work this out to be around 20000. Then over the next years put in the 2880 yearly I think to achieve 3600. Think that's correct. My next problem is choosing a sipp provider 🤔😄

Sarahspangles

evie2468 said:

Yes thanks. Finishing work so sorting out pension. I want to put into a sipp what I am allowed and I can roughly work this out to be around 20000. Then over the next years put in the 2880 yearly I think to achieve 3600. Think that's correct. My next problem is choosing a sipp provider 🤔😄

I used the Monevator Broker Comparison table. Note some SIPP providers/products offer only a limited range of funds (mentioned in the ‘fee notes’ column), whereas a ‘whole of market’ SIPP provider is normally suggested by the IFAs in this forum.

evie2468

Thank you everyone for taking the time to reply.  I do appreciate the help