Pensions and Salary Sacrifice

pensionbee25

Hi, hoping someone can help.  I am taking severance in March and want to sacrifice some to add to my pension and am confused about annual allowance.     Can I put in more than £60k by using previous years allowances?   IFA I spoke to has said I can only put in £60k or whatever my earnings are for year but that is different to what I have read as it says can use previous years allowances.  Thank you 

Cobbler_tone

Watch the Money show last night for answers. 

Most employers should pay severance/redundancy in the most tax efficient way, remembering you will get the first £30k tax free.

Bit of a basic guide:
https://retirement.fidelity.co.uk/media/UK Employees/PDF/Guides/carry-forward-factsheet-pensions.pdf

artyboy

Cobbler_tone said:

Watch the Money show last night for answers. 

Most employers should pay severance/redundancy in the most tax efficient way, remembering you will get the first £30k tax free.

Bit of a basic guide:
https://retirement.fidelity.co.uk/media/UK Employees/PDF/Guides/carry-forward-factsheet-pensions.pdf

Isn't there some forum rule about willfully giving bad advice 

Actually there can't be because I recall one forumite giving 'Mal'-advice (ahem) for years and getting away with it...

OP - in simple terms, you should be able to if all the following apply

- you had an active pension plan for the prior years you want to use carry forward
- you have not used your full annual allowance in those prior years
- you have already used the current year's £60k annual allowance (assuming you're not subject to tapering down of that allowance as a high earner)
- you still have enough relevant earnings in THIS tax year to pay over the £60k you have already contributed.

But definitely read the guide that @Cobbler_tone linked!

Marcon

Cobbler_tone said:

Watch the Money show last night for answers. 

That's truly unhelpful to novices. Please delete it in case people follow your suggestion and then believe what they hear...

Linton

pensionbee25 said:

Hi, hoping someone can help.  I am taking severance in March and want to sacrifice some to add to my pension and am confused about annual allowance.     Can I put in more than £60k by using previous years allowances?   IFA I spoke to has said I can only put in £60k or whatever my earnings are for year but that is different to what I have read as it says can use previous years allowances.  Thank you 

Both statements are true as far as they go.  The point is that there are 2 separate limits for paying into a pension

 - £60K including both your and your employers contributions  with carry over from the previous previous 3 year's
 - Earned income in the current tax year with no carry over.

 and to pay into a pension and get tax relief you must satisfy both.

Cobbler_tone

Marcon said:

Cobbler_tone said:

Watch the Money show last night for answers. 

That's truly unhelpful to novices. Please delete it in case people follow your suggestion and then believe what they hear...

Or maybe this 

Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!