Help needed - max amount I can put into pension

ijholdie

I think I may have messed up. I know @Secret2ndAccount and @Sarahspangles have given my logic from the example above the thumbs up, but I had an attack of the paranoia (!!). Hoping you can help...

In the example above, I have already contributed £27K (Gross) via salary sacrifice into my pension this tax year. I wanted to make a separate one off payment to my pension provider of £50K Gross (I pay them one off payment of £40K, and they top up the 20% tax making £50k total)... I assumed that of that £50K one off, £33K was taken out of this year's remaining annual allowance, and £17K from Apr 21-Apr 22 allowance (carryover).

BUT, does the whole of the £50K one off add the my existing contribution amount (£27K) and exceed my this year's £60K relevant earnings limit? (£27K + £50K > £60K)?

Secret2ndAccount

No, because the 27k was not a personal contribution, it was an employer contribution.
If your salary is 87k, but you sacrificed 27k, you are left with a salary of 60k and it's okay to contribute 50k
If your salary is 60k, but you sacrificed 27k, you are left with a salary of 33k and it's not okay to contribute 50k
You say your P60 shows 60k. This implies the former. P60 shows your taxable earnings. The 27k salary sacrifice is taken away from your salary so it shouldn't reach your P60.

Sarahspangles

You need to consider the two limits quite separately. Your relevant UK earnings after salary sacrifice are one limit. The other is your Annual Allowance which is the total of all comtributions. You can only carry forward to resolve breaches of the Annual Allowance limit.

ijholdie

Secret2ndAccountSarahspanglesSecret2ndAccount). I checked my salary slips and compared with the P60, and yes, the salary sacrifice contributions had been subtracted from the gross  (non sacrificed) salary figure to come up with the final P60 figure for taxable earnings (£60K).

I really appreciate your time and effort helping me with my daft questions, it is much appreciated - This is not a subject which is well explained in the HMRC documentation.