if I want to put more into pension than company pays, I am allowed up to £40000 each year (sub salary)
once over that I can go back 3 years???
if I do that, is there a required order in which to use those 3 years
ie
if I do 60000 its 40000 this year and 20000 'last year' or can it be 2 years ago?
or put another way
I did it last year in full plus some
now want to do it again...but need to go back 2 years...or even 3 years
is that OK?/... or have I blown it
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pension contributions
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- Lemon Quarter
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- Lemon Half
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Re: pension contributions
I think you've possibly got it wrong. The most you can put in this year is your earnings this year. The £40K limit and previous years earnings/allowances are only relevant if you have earnings this year to cover it.
Scott.
Scott.
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- Lemon Quarter
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Re: pension contributions
You use this year first, then the oldest bit of allowance first. You are limited by this years "earnings", not income, of course.
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- Lemon Quarter
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Re: pension contributions
*earnings*
So salary of say 60000 and bonus of 60000 is * earnings* 120000 ?
On that basis 40000 allowed for this year and add ? For last year...or the year before
Figs kept simple so I can understand replies
So salary of say 60000 and bonus of 60000 is * earnings* 120000 ?
On that basis 40000 allowed for this year and add ? For last year...or the year before
Figs kept simple so I can understand replies
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- 2 Lemon pips
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Re: pension contributions
salary and bonus are earnings
You use this years first, then use up the allowance from the oldest year, until there is none left.
I have seen some on line forms doing the calculation, but I am close to max each year so not really been bothered as not lots left over, although interested as my final year (in a few years) will be spent squeezing the pips
be careful as your examples are close to the point where your personal allowance shrinks (although pension contributions will undo that) but there is a point where your annual allowance tapers as well
You use this years first, then use up the allowance from the oldest year, until there is none left.
I have seen some on line forms doing the calculation, but I am close to max each year so not really been bothered as not lots left over, although interested as my final year (in a few years) will be spent squeezing the pips
be careful as your examples are close to the point where your personal allowance shrinks (although pension contributions will undo that) but there is a point where your annual allowance tapers as well
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- Lemon Slice
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Re: pension contributions
Use this year's £40k 2020-21 first
Then whatever remains unused from 2017-18
Then whatever remains unused from 2018-19
Then whatever remains unused from 2019-20
Then whatever remains unused from 2017-18
Then whatever remains unused from 2018-19
Then whatever remains unused from 2019-20
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- Lemon Quarter
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Re: pension contributions
many many thanks
I am starting to get a grasp
sadly this is not for me, its my son who has such problems to overcome
(my pensions are taken care of by PPF...so pathetic...but better than nothing!)
he will be over limits re allowance but his/our first issue was which years we go back to
now sorted
thanks all again
I am starting to get a grasp
sadly this is not for me, its my son who has such problems to overcome
(my pensions are taken care of by PPF...so pathetic...but better than nothing!)
he will be over limits re allowance but his/our first issue was which years we go back to
now sorted
thanks all again
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