Pension Carry forward question .

sidneyyoungblood

A bit of advice please I am self employed and last year was the first time I had contributed to a SIPP pension after years of just using an isa . 

I only put in £500   last year when I opened the account  as I was wating for the last week of March to get the exact amount I had earnt during the year but forgot to do the transfer ( stress at home ) .. 

I was looking to put in around 20k ( I earnt 25k)   but am a bit confused by the CARRY FORWARD - does this mean I can put in another 20k from this year if I earnt the same amount  ?

 how will this work when I have to submit me tax return to my accountant for 2024-25 .

any advice would be much appreciated.

Dazed_and_C0nfused

sidneyyoungblood said:

A bit of advice please I am self employed and last year was the first time I had contributed to a SIPP pension after years of just using an isa .

I only put in £500   last year when I opened the account  as I was wating for the last week of March to get the exact amount I had earnt during the year but forgot to do the transfer ( stress at home ) .. 

I was looking to put in around 20k ( I earnt 25k)   but am a bit confused by the CARRY FORWARD - does this mean I can put in another 20k from this year if I earnt the same amount  ?

 how will this work when I have to submit me tax return to my accountant for 2024-25 .

any advice would be much appreciated.

There is nothing whatsoever you can do now regarding 2024-25, that year has finished and you would just declare the contribution you did pay during 2024-25 on your Self Assessment return.

Carry forward may be relevant to 2025-26 but before considering that how much do you expect your taxable profit might be for 2025-26?

And was 2024-25 the first tax year you have ever had a pension?

sidneyyoungblood

Dazed_and_C0nfused said:

sidneyyoungblood said:

A bit of advice please I am self employed and last year was the first time I had contributed to a SIPP pension after years of just using an isa .

I only put in £500   last year when I opened the account  as I was wating for the last week of March to get the exact amount I had earnt during the year but forgot to do the transfer ( stress at home ) .. 

I was looking to put in around 20k ( I earnt 25k)   but am a bit confused by the CARRY FORWARD - does this mean I can put in another 20k from this year if I earnt the same amount  ?

 how will this work when I have to submit me tax return to my accountant for 2024-25 .

any advice would be much appreciated.

There is nothing whatsoever you can do now regarding 2024-25, that year has finished and you would just declare the contribution you did pay during 2024-25 on your Self Assessment return.

Carry forward may be relevant to 2025-26 but before considering that how much do you expect your taxable profit might be for 2025-26?

And was 2024-25 the first tax year you have ever had a pension?

yes 24-25 was when I started a sipp pension ( I opened it a year before but never contributed ) ,  2025 - 26 would be around 30k...  but would want to contribute 40k in total using the funds which was I was going to use last year. is this possible as I am not too sure how the tax would work as I am contributing more than I have earnt . 

Dazed_and_C0nfused

sidneyyoungblood said:

Dazed_and_C0nfused said:

sidneyyoungblood said:

A bit of advice please I am self employed and last year was the first time I had contributed to a SIPP pension after years of just using an isa .

I only put in £500   last year when I opened the account  as I was wating for the last week of March to get the exact amount I had earnt during the year but forgot to do the transfer ( stress at home ) .. 

I was looking to put in around 20k ( I earnt 25k)   but am a bit confused by the CARRY FORWARD - does this mean I can put in another 20k from this year if I earnt the same amount  ?

 how will this work when I have to submit me tax return to my accountant for 2024-25 .

any advice would be much appreciated.

There is nothing whatsoever you can do now regarding 2024-25, that year has finished and you would just declare the contribution you did pay during 2024-25 on your Self Assessment return.

Carry forward may be relevant to 2025-26 but before considering that how much do you expect your taxable profit might be for 2025-26?

And was 2024-25 the first tax year you have ever had a pension?

yes 24-25 was when I started a sipp pension ( I opened it a year before but never contributed ) ,  2025 - 26 would be around 30k...  but would want to contribute 40k in total using the funds which was I was going to use last year. is this possible as I am not too sure how the tax would work as I am contributing more than I have earnt . 

No, that isn't going to be possible.

Your contributions are limited by your profit.

So you could pay £24k into the pension and have £6k added in pension tax relief to make a gross contribution of £30k.  But you cannot add more than that.

You can only use carry forward once you have used this year's annual allowance.  As this is currently £60k and you can't use all of that carry forward isn't relevant/possible.