Hi,
The pension threshold is based on the level of your annual income from employment / self employment net profit / partnership net profit.
The amount that qualifies for tax relief, is the lower of your annual income or £40000 (£60000 in 23/24).
You can carry forward unused annual allowances from the 3 previous tax years.
Where you carry forward unused annual allowance and the pension payments you make into the pension scheme (not your employers payments) remain below the threshold, you do not need to report to HMRC.
You do not include the payments made into your pension scheme made by your employer, as you cannot claim tax relief on these payments.
Check if you have unused annual allowances on your pension savings
Thank you.