Thanks for the reply but I have already read the linked page and also used the annual allowance calculator and have still not found the answer to my question.
The linked page only states that the annual allowance for the 22-23 tax year is £40,000 and that you can carry forward unused allowances from the previous three years.
It doesn’t state whether the unused allowances from the previous three years is capped at your earned income allowance for each of those years if that is lower than £40,000?
Using the calculator, there is no input for your earned income for each year. So am I correct in assuming that the carried forward allowance for the last three years is the difference between £40,000 and contributions made and if the earned income in those years was less than £40,000 it does not effect the carried forward amount?
I’m struggling to find out the correct answer to this scenario regarding what is the carried forward annual pension allowance. The figures are deliberately exaggerated.
Say I earned £10,000 of self employed income for the last 3 years. Each year I made a £5,000 payment (gross) into my SIPP as my partner earns much more and pays for everything (lucky me!)
This year has finally been a bumper year and I earned £95,000.
I know the maximum gross contribution I can make into my SIPP is £60,000 for this tax year.
But if I want to pay more in (upto my earned income of £95,000) is the carry forward amounts for the previous years £5,000 per year (based on the amount of earned income not used for the years pension contribution) ? Or is it £35,000 per year based on the previous annual allowance of £40,000? The difference would be being able to pay a maximum of £75,000 into the pension this years Vs upto £95,000.
I've received a letter from HMRC advising that I may need to pay the higher income child benefit tax for the year ending 2022.
I fill in self assessment forms and my taxable income was £49,500 plus a dividend of £2,000 which was tax free as per the allowance for that year. So I thought I didn't have to pay the charge as my taxable income was under £50,000.
Or is my taxable income technically £51,500 for child benefit purposes? I can't seem to find any information online about this specific scenario. Thank you