Salary Sacrifice pension contribution above Annual Allowance utilising carry forward

My contribution to my employer's pension scheme is made via salary sacrifice. I have unused Annual Allowance from the last three tax years which I want to carry forward to the current tax year. I am proposing to increase my salary sacrifice contribution in the current tax year, with the result that the total pension contribution will be above the Annual Allowance (£60,000 for 2024/5) and so will utilise some of the carry forward allowances. As the full amount of the pension contribution in 2024/5 (say £80,000) is paid by my employer, I understand that there is nothing to enter on my 2024/5 self-assessment. What is the correct way of me notifying the HMRC that my total pension contribution of £80,000 in 2024/5 is utilisng carry forward allowance? (So as to avoid paying an ‘annual allowance charge’ for exceeding the Annual Allowance).

Hi
It is only where you exceed the pension threshold, that you need to declare the excess on SA101 additonal information.  As long a you remain within the revised threshhold, there is nothing to report on the tax return.

Thank you for the reply. Is the "revised (pension) threshold" that you refer to is the total of the Annual Allowance (AA) for the current tax year plus any unused AA from the previous three years? (I just want to check that it's not another value that I've missed). Thanks

Hi,

It is the current year plus any unused relief. Once you use up all the relief available that is when the tax charge is due.

Thank you.