Salary sacrifice over £60,000 into workplace pension.

222Johnny222

I am planning to use my previous years allowance balance and to salary sacrifice around £60,000 this year if this is allowed - when adding the employer contributions it will be circa £70,000 in this tax year.

I just wondered how I allocate the extra £10,000 into last years allowance of if I even can doing it this way.
Opinions as always would be most welcome.

El_Torro

You can use up to 3 years worth of previous tax years' allowance if you have any available. So if you are going over £60k this year the allowance you can take is:

2024 / 2025 - £60k
2023 / 2024 - £60k
2022 / 2023 - £40k 

The allowance increased from £40k to £60k in the 2023 / 2024 tax year.

If you already used the maximum in previous years then you have no carry over available. 

222Johnny222

El_Torro said:

You can use up to 3 years worth of previous tax years' allowance if you have any available. So if you are going over £60k this year the allowance you can take is:

2024 / 2025 - £60k
2023 / 2024 - £60k
2022 / 2023 - £40k 

The allowance increased from £40k to £60k in the 2023 / 2024 tax year.

If you already used the maximum in previous years then you have no carry over available. 

Thanks.
can I just do it or do I need to say to HMRC that I am using previous years or will they just see I am ?

Dazed_and_C0nfused

222Johnny222 said:

El_Torro said:

You can use up to 3 years worth of previous tax years' allowance if you have any available. So if you are going over £60k this year the allowance you can take is:

2024 / 2025 - £60k
2023 / 2024 - £60k
2022 / 2023 - £40k 

The allowance increased from £40k to £60k in the 2023 / 2024 tax year.

If you already used the maximum in previous years then you have no carry over available. 

Thanks.
can I just do it or do I need to say to HMRC that I am using previous years or will they just see I am ?

You don't need to tell them anything unless you exceed your available allowance.

You use the current year allowance first and then go back to 2022-23 and move forwards from there (if necessary).

You also needed to have a pension open in the year you are carrying forward unused relief from.

El_Torro

No, you don't need to tell HMRC.

Marcon

222Johnny222 said:

I am planning to use my previous years allowance balance and to salary sacrifice around £60,000 this year if this is allowed - when adding the employer contributions it will be circa £70,000 in this tax year.

Sidetracking slightly - if you salary sacrifice £60K, will your employer still be paying you at least minimum wage?

222Johnny222

Marcon said:

222Johnny222 said:

I am planning to use my previous years allowance balance and to salary sacrifice around £60,000 this year if this is allowed - when adding the employer contributions it will be circa £70,000 in this tax year.

Sidetracking slightly - if you salary sacrifice £60K, will your employer still be paying you at least minimum wage?

Yes I will; thanks though.