Annual Allowance Previous Years Question

rundmc-k

I was wondering if someone could help me out with working out if I have any annual allowance leeway for the current 25/26 tax year. 

In 24/25 I was 5700 over the AA threshold
However in 23/24 I was 13400 under it. 
In 22/23 I was 8000 over it
In years prior to this I was significantly under it as I wasn't paying into a private pension in addition to my workplace pension. 

So in this current tax year, how would it work if I went over the annual allowance threshold?
Many thanks if anyone can help me with this.

Dazed_and_C0nfused

rundmc-k said:

I was wondering if someone could help me out with working out if I have any annual allowance leeway for the current 25/26 tax year. 

In 24/25 I was 5700 over the AA threshold
However in 23/24 I was 13400 under it. 
In 22/23 I was 8000 over it
In years prior to this I was significantly under it as I wasn't paying into a private pension in addition to my workplace pension. 

So in this current tax year, how would it work if I went over the annual allowance threshold?
Many thanks if anyone can help me with this.

Which year(s) unused allowance was utilised in 2024/25?

rundmc-k

Dazed_and_C0nfused said:

rundmc-k said:

I was wondering if someone could help me out with working out if I have any annual allowance leeway for the current 25/26 tax year. 

In 24/25 I was 5700 over the AA threshold
However in 23/24 I was 13400 under it. 
In 22/23 I was 8000 over it
In years prior to this I was significantly under it as I wasn't paying into a private pension in addition to my workplace pension. 

So in this current tax year, how would it work if I went over the annual allowance threshold?
Many thanks if anyone can help me with this.

Which year(s) unused allowance was utilised in 2024/25?

It would have utilised 23/24 as looking back I've just realised in 21/22 I was slightly over AA as well. It would have been the years before that that I was always well under it.

Dazed_and_C0nfused

rundmc-k said:

Dazed_and_C0nfused said:

rundmc-k said:

I was wondering if someone could help me out with working out if I have any annual allowance leeway for the current 25/26 tax year. 

In 24/25 I was 5700 over the AA threshold
However in 23/24 I was 13400 under it. 
In 22/23 I was 8000 over it
In years prior to this I was significantly under it as I wasn't paying into a private pension in addition to my workplace pension. 

So in this current tax year, how would it work if I went over the annual allowance threshold?
Many thanks if anyone can help me with this.

Which year(s) unused allowance was utilised in 2024/25?

It would have utilised 23/24 as looking back I've just realised in 21/22 I was slightly over AA as well. It would have been the years before that that I was always well under it.

In that case it looks like you only have the balance from 2023/24 available, not the full £13,400.

rundmc-k

Ah I see, I wasn't sure if that was the way it worked. 
So basically if I went over the 60k AA for 25/26 would it be worked out like this: 

22/23: 0 surplus available
23/24: 7700 surplus available to be utilised (as 5700 was used to supplement the 24/25 AA)
24/25: 0 surplus available 

rundmc-k

rundmc-k said:

Ah I see, I wasn't sure if that was the way it worked. 
So basically if I went over the 60k AA for 25/26 would it be worked out like this: 

22/23: 0 surplus available
23/24: 7700 surplus available to be utilised (as 5700 was used to supplement the 24/25 AA)
24/25: 0 surplus available 

Another wee question... if what I've described above is correct, and say for example, in 25/26 I put 64k into pensions, would that mean that in the 26/27 tax year, there would still be a potential 3700 surplus from the 23/24 year that could theoretically be used at that stage? Then subsequent to that year there would no longer be any carry forward available from the previous 3yrs?

Marcon

How much are you earning in the current tax year?

rundmc-k

Marcon said:

How much are you earning in the current tax year?

Probably around £85k

Secret2ndAccount

You've got it worked out now. Every year, you start with 60k for that year. Then you go back to 3 yrs ago, then 2 yrs ago then 1 yr ago.
3 yrs ago, all used up
2 yrs ago, 7700 remaining
last yr, all used up

So 67,700 this year, and if you use that, 60k next year. 
You have no choice over the order in which you use prior years. In your case, it matters not since there's only 1 year that's any use. 

rundmc-k

Awesome, thanks for explaining that so clearly, that makes sense now

DRS1

Just bear in mind that the AA was £40k for 22/3 and some preceding years