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Unused annual allowance
btcp
Posts: 310 Forumite
What do I need to do to use my unused annual pension allowance from the previous years? I was never close to 40k annual contribution, which I understand is a pen untaxable limit for a year. It seems like this year and next year I should be able to contribute more than 40k, and there is information on HMRC site that people can carry over the unused allowance from the previous 3 years. Do I need to let them know or ask for it, or do I simply pay more and the amount will automatically get tax relief? How do they know I don’t pay more than my allowance?
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Comments
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1) You need to earn more than £40K in the tax year you want to contribute. Your total contributed will be limited to your gross earnings for that tax year you make the contributions.
2) Keep a (personal) record of what you have contributed in each each tax year in case HMRC should query it.
Beyond that, not a lot. You don't specifically have to tell them you're using it - they'll be getting information from the pension providers for how much you actually contribute. Just make sure you're not going over any limits: https://www.gov.uk/guidance/check-if-you-have-unused-annual-allowances-on-your-pension-savingsYou can carry forward unused annual allowances from the 3 previous tax years. You do not need to report this to HMRC.Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Paul_Herring wrote: »1) You need to earn more than £40K in the tax year you want to contribute. Your total contributed will be limited to your gross earnings for that tax year you make the contributions.
2) Keep a (personal) record of what you have contributed in each each tax year in case HMRC should query it.
Beyond that, not a lot. You don't specifically have to tell them you're using it - they'll be getting information from the pension providers for how much you actually contribute. Just make sure you're not going over any limits: https://www.gov.uk/guidance/check-if-you-have-unused-annual-allowances-on-your-pension-savings
Thank you, that’s clear. I earn more, so no issue here.0
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