Using up previous years "unused" pension allowance

silvercue

QrizB said:

silvercue said:

kempiejon said:

silvercue said:

My employer contributes a value at 10% of my salary.  I contribute half my salary.  

Am I right to understand this to mean you can contribute 40% more, include the relief. Unused carry forward can be added to the £60k current allowance untill your remaining 40% is all in. Too much and there's a tax charge. I used to get about 90% of my salary in not wanting to make an error and trigger the tax charge.

My plan only allows a max of 50% salary to be added to pension.

That limit is for your employer's scheme?

You could, if you wanted to contribute more than that (eg. to move "other" savings into your pension for the tax benefits), open a personal pension and pay into that.

Of course you still need money to live on, so exceeding 50% of salary might not be affordable.

Yes, the workplace pension has set that limit. I would probably not go any further anyway

Somebody

silvercue said:

Hi.  So what I meant is.

The numbers I showed are total contributions to my pension.  That includes salary sacrifice, employer contribution and additional payments I have made that have had tax relief applied.  

My employer contributes a value at 10% of my salary.  I contribute half my salary.  

I don't get the above. 

As its salary sacrifice, only employer's contributions and the additional payments with tax relief count towards the Annual Allowance.   

You say you contribute half of your salary; is that correct? Or are you saying that you sacrifice 50% of your salary, and 60% of your salary ends up in the pension from your employer?

Also, I may have missed it but are your earnings well above £60k to have headroom to cover the carry forwards? 

Albermarle

Somebody said:

silvercue said:

Hi.  So what I meant is.

The numbers I showed are total contributions to my pension.  That includes salary sacrifice, employer contribution and additional payments I have made that have had tax relief applied.  

My employer contributes a value at 10% of my salary.  I contribute half my salary.  

I don't get the above. 

As its salary sacrifice, only employer's contributions and the additional payments with tax relief count towards the Annual Allowance.   

You say you contribute half of your salary; is that correct? Or are you saying that you sacrifice 50% of your salary, and 60% of your salary ends up in the pension from your employer?

Also, I may have missed it but are your earnings well above £60k to have headroom to cover the carry forwards? 

It is a good question.

I know some employers can present the info in a confusing way.
A family member is in a salsac scheme, but on their payslip it shows the actual employer contribution separate.
Although when it arrives at the pension provider it is just one employer payment, consisting of the salsac amount and the employer contribution.