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Posted Thu, 21 Mar 2024 15:02:04 GMT by Joseph K
Do the employer contributions in the current year cut into the upper bound set by the current year's salary when using up carry-forward allowances? Say, for FY 23-24: - Taxable pay from the employer: £61,000 - Employer contribution to pension: £2,000 - Personal contribution: £58,000 (i.e., the £60,000 limit less employer contribution). Carry-forward allowance from FY 22-23: £3,000. Can the remaining £3,000 of pay in FY 23-24 be used for the carry-forward allowance from FY 22-23? Or is the amount available for the carry-forward limited to £1,000 (i.e. this year's pay of £61,000 less the £60,000 total pension contribution including the employer contribution)? Thanks.
Posted Tue, 26 Mar 2024 10:40:12 GMT by HMRC Admin 8 Response
Hi,
Your employer's contribution to your pension scheme is not a factor when calculating the maximum amount that you can pay into a pension scheme and claim tax relief.  
It is your contributions that matter, not your employers.  If your income is £61000, then you can pay up to £60000 into your penson scheme and claim tax relief.  
Any unused relief from the 3 previous tax years can be carried forward and added to the threshold for the tax year in question.
Thank you.
 

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