help with pension contributions - be gentle

jimboger1

only looking for some help - please be gentle as I am pretty clueless about these things

I having been piling money into my pension for the last few years including big bonuses and I THINK I'm still within my allowance but not sure  - see below - this includes employer contributions and tax relief

• 2024 - 2025 - £74,280
• 2023 - 2024 - £95,073
• 2022 - 2023 - £8,753
• 2021 - 2022 - £74,045
• 2020 - 2021 - £7,589
• 2019 - 2020 - £9,406
• 2018 - 2019 - £6,963
• 2017 - 2018 - £6,679
• 2016 - 2017 - £5,829
• 2015 - 2016 - £3,400

according to an online calculator, I have £17,200 allowance that I can still use for 24/24
so I have a couple of questions - 

1. is this figure correct
2.  I intend to retire in December 2025, and for 2025/2026, I intend to put in £4k per month from April '25 to December '25 (£36K), then around £55k bonus also in December '25 - CAN I DO THIS? 
   
3. I know the above will be over the limit, but can I use the 26/27 allowance when I'm not working ?
4. if I can't do (2) / (3) above, what would be the best approach

many thanks

jim

Marcon

jimboger1 said:

only looking for some help - please be gentle as I am pretty clueless about these things

I having been piling money into my pension for the last few years including big bonuses and I THINK I'm still within my allowance but not sure  - see below - this includes employer contributions and tax relief

• 2024 - 2025 - £74,280
• 2023 - 2024 - £95,073
• 2022 - 2023 - £8,753
• 2021 - 2022 - £74,045
• 2020 - 2021 - £7,589
• 2019 - 2020 - £9,406
• 2018 - 2019 - £6,963
• 2017 - 2018 - £6,679
• 2016 - 2017 - £5,829
• 2015 - 2016 - £3,400

according to an online calculator, I have £17,200 allowance that I can still use for 24/24
so I have a couple of questions - 

1. is this figure correct
2.  I intend to retire in December 2025, and for 2025/2026, I intend to put in £4k per month from April '25 to December '25 (£36K), then around £55k bonus also in December '25 - CAN I DO THIS? 
   
3. I know the above will be over the limit, but can I use the 26/27 allowance when I'm not working ?
4. if I can't do (2) / (3) above, what would be the best approach

many thanks

Jim

To use 'carry forward', you need to be earning enough in the tax year you make the contributions to cover ALL the contributions you make that year. What were you earning in (say) 23/24 - hopefully at least £95,073? 

1. Need to know your total earnings for the current tax year
2. Not unless you have both the taxable earnings and the 'carry forward' to do so - and it seems unlikely from the very little info you've given
3. You can pay in £2,880 and it will be topped up to £3,600 - otherwise no tax relief available if you have no earnings in 26/27
4. Contribute as much as you can while you're earning

jimboger1

Marcon said:

jimboger1 said:

only looking for some help - please be gentle as I am pretty clueless about these things

I having been piling money into my pension for the last few years including big bonuses and I THINK I'm still within my allowance but not sure  - see below - this includes employer contributions and tax relief

• 2024 - 2025 - £74,280
• 2023 - 2024 - £95,073
• 2022 - 2023 - £8,753
• 2021 - 2022 - £74,045
• 2020 - 2021 - £7,589
• 2019 - 2020 - £9,406
• 2018 - 2019 - £6,963
• 2017 - 2018 - £6,679
• 2016 - 2017 - £5,829
• 2015 - 2016 - £3,400

according to an online calculator, I have £17,200 allowance that I can still use for 24/24
so I have a couple of questions - 

1. is this figure correct
2.  I intend to retire in December 2025, and for 2025/2026, I intend to put in £4k per month from April '25 to December '25 (£36K), then around £55k bonus also in December '25 - CAN I DO THIS? 
   
3. I know the above will be over the limit, but can I use the 26/27 allowance when I'm not working ?
4. if I can't do (2) / (3) above, what would be the best approach

many thanks

Jim

To use 'carry forward', you need to be earning enough in the tax year you make the contributions to cover ALL the contributions you make that year. What were you earning in (say) 23/24 - hopefully at least £95,073? 

1. Need to know your salary for the current tax year
2. Not unless you have both the taxable earnings and the 'carry forward' to do so - and it seems unlikely from the very little info you've given
3. You can pay in £2,880 and it will be topped up to £3,600 - otherwise no tax relief available if you have no earnings in 26/27
4. Contribute as much as you can while you're earning

1. current salary is £80k with a 60k bonus at December '24
2. what other info do you need?
3. where do you get these numbers?
4 I intend to but worried what happens if I go over the allowance?

Jim

Sarahspangles

I don’t think that carry forward remaining is right. You have to use all your current year Annual Allowance first before you go back three years, then it’s gone, you can’t use it again. You’re definitely limited to £60k in 2025/26.

What was the online calculator that you used, could you link? 

jimboger1

hi Sarah, I can post links as I'm new to the forum - I just googled pension carry forward calculator, and used the first couple I found and they all gave me the same figure 

GunJack

Point 3 - if you have no earnings in a tax year, you're limited to 3,600 gross (2880 nett) into a pension scheme in that financial year for tax relief. That's just the rules. You could get more in but with no tax relief, but might be a bit of a faff to achieve.

Sarahspangles

jimboger1 said:

hi Sarah, I can post links as I'm new to the forum - I just googled pension carry forward calculator, and used the first couple I found and they all gave me the same figure 

I put it into the spreadsheet I used for my own checks. I get the remaining AA available to carry forward from 2022/23, which you could still use this year, to a further £14,305. It’s not far out but maybe someone else will check. You need to take full advantage of whatever it is, as you’ve used up all the Annual Allowance for the three years prior to 2025/26 so will be restricted to £60k.

You definitely can’t use carry back from 2026/27 to cover a breach in 2025/26.

Marcon

jimboger1 said:

Marcon said:

jimboger1 said:

only looking for some help - please be gentle as I am pretty clueless about these things

I having been piling money into my pension for the last few years including big bonuses and I THINK I'm still within my allowance but not sure  - see below - this includes employer contributions and tax relief

• 2024 - 2025 - £74,280
• 2023 - 2024 - £95,073
• 2022 - 2023 - £8,753
• 2021 - 2022 - £74,045
• 2020 - 2021 - £7,589
• 2019 - 2020 - £9,406
• 2018 - 2019 - £6,963
• 2017 - 2018 - £6,679
• 2016 - 2017 - £5,829
• 2015 - 2016 - £3,400

according to an online calculator, I have £17,200 allowance that I can still use for 24/24
so I have a couple of questions - 

1. is this figure correct
2.  I intend to retire in December 2025, and for 2025/2026, I intend to put in £4k per month from April '25 to December '25 (£36K), then around £55k bonus also in December '25 - CAN I DO THIS? 
   
3. I know the above will be over the limit, but can I use the 26/27 allowance when I'm not working ?
4. if I can't do (2) / (3) above, what would be the best approach

many thanks

Jim

To use 'carry forward', you need to be earning enough in the tax year you make the contributions to cover ALL the contributions you make that year. What were you earning in (say) 23/24 - hopefully at least £95,073? 

1. Need to know your salary for the current tax year
2. Not unless you have both the taxable earnings and the 'carry forward' to do so - and it seems unlikely from the very little info you've given
3. You can pay in £2,880 and it will be topped up to £3,600 - otherwise no tax relief available if you have no earnings in 26/27
4. Contribute as much as you can while you're earning

1. current salary is £80k with a 60k bonus at December '24
2. what other info do you need?
3. where do you get these numbers?
4 I intend to but worried what happens if I go over the allowance?

Jim

1. So absolute max of £140K contribution  in 24/25 including tax relief on personal contributions/any employer contributions
2. Salary history for the previous 3 tax years
3. That's the legislative position
4. You pay tax on the amount by which you exceed the allowance.

jimboger1

GunJack said:

Point 3 - if you have no earnings in a tax year, you're limited to 3,600 gross (2880 nett) into a pension scheme in that financial year for tax relief. That's just the rules. You could get more in but with no tax relief, but might be a bit of a faff to achieve.

understood

jimboger1

Sarahspangles said:

jimboger1 said:

hi Sarah, I can post links as I'm new to the forum - I just googled pension carry forward calculator, and used the first couple I found and they all gave me the same figure 

I put it into the spreadsheet I used for my own checks. I get the remaining AA available to carry forward from 2022/23, which you could still use this year, to a further £14,305. It’s not far out but maybe someone else will check. You need to take full advantage of whatever it is, as you’ve used up all the Annual Allowance for the three years prior to 2025/26 so will be restricted to £60k.

You definitely can’t use carry back from 2026/27 to cover a breach in 2025/26.

Sarahspangles said:

jimboger1 said:

hi Sarah, I can post links as I'm new to the forum - I just googled pension carry forward calculator, and used the first couple I found and they all gave me the same figure 

I put it into the spreadsheet I used for my own checks. I get the remaining AA available to carry forward from 2022/23, which you could still use this year, to a further £14,305. It’s not far out but maybe someone else will check. You need to take full advantage of whatever it is, as you’ve used up all the Annual Allowance for the three years prior to 2025/26 so will be restricted to £60k.

You definitely can’t use carry back from 2026/27 to cover a breach in 2025/26.

thanks, strange that you get a different figure though 

jimboger1

Marcon said:

jimboger1 said:

Marcon said:

jimboger1 said:

only looking for some help - please be gentle as I am pretty clueless about these things

I having been piling money into my pension for the last few years including big bonuses and I THINK I'm still within my allowance but not sure  - see below - this includes employer contributions and tax relief

• 2024 - 2025 - £74,280
• 2023 - 2024 - £95,073
• 2022 - 2023 - £8,753
• 2021 - 2022 - £74,045
• 2020 - 2021 - £7,589
• 2019 - 2020 - £9,406
• 2018 - 2019 - £6,963
• 2017 - 2018 - £6,679
• 2016 - 2017 - £5,829
• 2015 - 2016 - £3,400

according to an online calculator, I have £17,200 allowance that I can still use for 24/24
so I have a couple of questions - 

1. is this figure correct
2.  I intend to retire in December 2025, and for 2025/2026, I intend to put in £4k per month from April '25 to December '25 (£36K), then around £55k bonus also in December '25 - CAN I DO THIS? 
   
3. I know the above will be over the limit, but can I use the 26/27 allowance when I'm not working ?
4. if I can't do (2) / (3) above, what would be the best approach

many thanks

Jim

To use 'carry forward', you need to be earning enough in the tax year you make the contributions to cover ALL the contributions you make that year. What were you earning in (say) 23/24 - hopefully at least £95,073? 

1. Need to know your salary for the current tax year
2. Not unless you have both the taxable earnings and the 'carry forward' to do so - and it seems unlikely from the very little info you've given
3. You can pay in £2,880 and it will be topped up to £3,600 - otherwise no tax relief available if you have no earnings in 26/27
4. Contribute as much as you can while you're earning

1. current salary is £80k with a 60k bonus at December '24
2. what other info do you need?
3. where do you get these numbers?
4 I intend to but worried what happens if I go over the allowance?

Jim

1. So absolute max of £140K contribution  in 24/25 including tax relief on personal contributions/any employer contributions
2. Salary history for the previous 3 tax years
3. That's the legislative position
4. You pay tax on the amount by which you exceed the allowance.

1. I thought max was £60k per year