Unused SIPP allowance from 2022/2023 tax year

username12345678

Hi,

I have a SIPP with II and I can see that I haven't used any of the allowance for 22/23.

Is my understanding correct that I can use 22/23 as long as I make the contributions before the 5th of April as it is within the 3 years?

I've never used carry over before so I'm unsure as to how II handle it or the process for claiming back the rebate from HMRC for carry over so I'd appreciate any guidance.

Thanks.

NoMore

Have you used up this year's allowance first, ie you and your employer contributions are 60k ?

Do you have enough relevant earnings to cover any contribution you will make ?

Do you understand what carry forward does ? It allows you to make larger contributions this year by using left over allowance from previous years, but any tax relief is always based on the year that the contribution is made. Your tax position in the carry forward years is irrelevant to contributions made this year.

If you can use carry forward, then there's nothing to do, you don't have to declare but keep good records for if HMRC ever audit.

username12345678

I have used up this years allowance (and 23/24, 24/25).

I have enough earnings to cover 22/23 and 25/26 combined if I'm understanding the question?

I would have had enough earnings for 22/23 if that is relevant?

So would I be correct in thinking I can contribute the £48,000 net this tax year, plus the £32,000 net for 22/23, and HMRC will do he calculations automatically if I go back and adjust the SA submission for 22/23 to reflect what I've done in this tax year?

I'll be able to claim the rebate for both years in a few months as I normally would?

NoMore

Your earnings and tax position in previous years are irrelevant, you are not claiming tax relief in those years for contributions made in this year, The carry forward allowance allows you to make larger contributions this year and any tax relief will be based on your tax position this year.

You seem to think you are claiming tax relief from previous years by contributing this year, that's not how it works.

Also be aware that the AA in 2022/23 was 40k not 60k.

username12345678

Thanks for the explanation.

I was looking at it that I was using 22/23's allowance this year in addition to 25/26.

Without wanting to come across as a bit thick by labouring the point would this be a correct summary:

I can contribute a total this year of £80,000 (net) providing this years relevant income covers the gross amount.

II will automatically claim the 20% tax relief which will make £100,000 the total additional in to the SIPP.

HMRC system will automatically understand where the additional contributions are covered from.

I can then use the gov.uk service to claim back the additional relief on the full contribution.

Have I got this correct?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81936735#Comment_81936735

Which tax year(s) do you think you will be getting tax relief for?

username12345678

https://forums.moneysavingexpert.com/discussion/comment/81936768#Comment_81936768

25/26 and the unused 22/23 AA.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81936771#Comment_81936771

How do you think you can tax relief for 2022/23 when you haven't made a contribution for that tax year?

username12345678

https://forums.moneysavingexpert.com/discussion/comment/81936821#Comment_81936821

I think this is perhaps where I'm misunderstanding the process.

What I thought would happen is that I would contribute £80,000 in to the SIPP during this tax year (25/26).

II would automatically claim tax relief on those contributions taking them to £100,000 for 25/26.

I would then claim the additional tax relief through gov.uk and HMRC would automatically see that the unused AA for 22/23 has been used as well as the AA for 25/26.

DRS1

Does HMRC even have a system for monitoring the annual allowance? Or does it rely on taxpayers reporting when they have gone over the allowance?

Isthisforreal99

Back to basics here, what are your net relevant earnings for 25/26?