Maximise pension contributions, but previously exceeded Annual Allowance
Clients can maximise their pension contributions by using Carry Forward of any unused Annual Allowances in previous 3 years – but care is required if exceeded AA in any of those earlier years
- Kerry Forward is a company director and a member of the company pension scheme
- It is expected her income will be £100,000 in 2022/23 – as it was in 2016/17 to 2021/22.
- This is below the ‘threshold’ income limit (£240k in 2022/23, 2021/22 & 2020/21 & £110,000 for 2016/17 to 2019/20), so her Annual Allowance is not tapered & she has £40,000 available for those years.
- The pattern of contributions to Pension Input Periods ending in the previous 3 tax years was;
| Year | Total Paid | Unused/(Excess) |
| 2021/22 | £18,000 | £22,000 |
| 2020/21 | £98,000 | (£58,000) |
| 2019/20 | £14,000 | £26,000 |
Having exceeded the Annual Allowance in 2020/21
How much can Kerry pay this tax year?
Solution; Carry Forward calculator
