Carry over pension contribution allowance

This year I will have a gross employment income of about 79K. I make pension contributions as salary sacrifice. As I have received some inheritance money and not far from retirement I will make about 60K of pens contribution this year, taking up all the current year pension contribution allowance. This is combined salary sacrifice and employer contributions. I calculate that the taxable income will be around 35K. Using the HMRC pens allowance calculator which includes carry over it says I will have about 100K allowance, given that 60K will have been used, I should have 40K allowance remaining. with those assumptions above, I would like to know what is the maximum additional tax relieved contributions I could make for this year, is 35K or 40K or something else. thank you

Hi Shades of Blue,
The relieved contributions are only up to your level of relevant earnings which you say is about 79k so any pension payment made above this will not receive any tax relief.
The excess figure you are referring to is to ensure that you do not pay the pension tax charge. any unused amount can only be carried forward for 3 years.


 

Thank you. 79k is the income before the salary sacrifice. 35K or less will be my P60 salary So I understand I can make another 35k of personal contribution. Would I make a payment to the pension provider of 80% of that and the provider would add the other 20%? Is that right?

Hi
With the salary sacrifice scheme, the part of your salary that is sacrificed, is not taxed, so the full amount of relief is given on the pension payment and no further relief is due.  
You would make a payment of 100% to the provider, as the whole amount has been relieved of tax.

thank you for your last reply These are two separate contributions. The first is the paid via salary sacrifice and already include tax relief and I did not expect further tax relief on that. The second is an additional pension contribution from me from taxed income, no tax relief was given, and I was checking if and how I get tax relief on that. In actual fact if I try to make that second contribution the pension provider web site automatically deducts 20% from the amount I am sending. I was looking for confirmation that is correct for HMRC and what is the maximum amount I can legitimately contribute in this way.

Hi Shades of Blue,
If the 2nd payment is made direct by you, you need to inform HMRC that you have done this.
For payments over £10,000 you need to supply written evidence of the payment and send this to:
HMRC, PAYE & Self Assessment BX9 1AS.
The maximum amount depends on what your salary sacrifice payment is.
You may therefore want to discuss this with a financial advise.
Thank you.