Prior Year Pension Tax Relief

[5pen]

I would be grateful if anyone with experience of this would check my understanding and calculations of the maximum net contribution I can make. I paid tax at 40% in each of the years in question.

Assuming I had the cash available, have I understood the potential amount I could add and to my pension given the figures shown?

I understand that I can utilise unused allowance from the tax years from 2015/16 to 2017/18? (assuming I make the contribution before the end of the current tax year). Is this correct?

Figures from my provider;


- * I understand that the allowance for 2015/16 period #2 was 0, but you could carry forward up to 40,000 of unused allowance from period #1.

Finally and most importantly, are the figures in the column 'Net' correct given the allowances and inputs shown?

I'd be grateful for any assistance.

[5pen]

EddieSteadyGo said:

Your calculation for 2015/16 isn't correct.

The 'pre-alignment period' in the first part of the 2015/16 tax year effectively doesn't get any carry forward allowance.

So you paid in circa £6400 in that period, which is great. But there is no carry forward amount for this period.

You then paid in circa £18,400 for the second part of 15/16. And that part of the year does have the normal £40,000 carry forward allowance.

So overall you have the ability to carry forward circa £21,600 from 2015/16 (at least for the next few weeks, as we are about to tip into the next tax year).

Thank you. I can see that now and had misunderstood how the allowances for the 2 input period of 2015/16 worked. To clarify, if I make a net contribution of circa £12,960 this will gross-up to £21,600 and will use the 2015/16 allowance before I lose it when the 2019/2020 tax year commences. Mr Pointy's post about the 'order of use' has concerned me slightly as surely this would indeed mean that I 'lose' the 2015/16 unused allowance?

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Welshbeef said:

For pension overpayments - without relying on company payroll to make the payment in the March payroll do you pay in directly into your pension provider of choice/company scheme?

It will be made via the company payroll. It's a good point as though it will be processed in my employer's March payroll and I will need to ensure that it hits the pension before 05/04/2019.