Use this wizard to calculate the excess contributions (contributions that exceed the brought forward and current year allowance) as well as to keep a track of your previous years contributions and brought forward allowances.
Note: This wizard can be used for defined contribution schemes, which have not been flexibly accessed. The wizard is not suitable for money purchase schemes or if you have flexibly accessed your pension scheme because of the rules surrounding the alternative annual allowance. Please see HMRC guidance
1 Pension contributions for the 2019-20 tax year: Use this section to record the current year contributions and to work out the excess contributions before any brought forward allowances can be used.
2 Unused allowances brought forward: Use this section to record and keep a track of brought forward allowances that can be used against the current year’s excess contributions.
3 2019-20 annual allowance summary: Displays the total contributions from section 1, brought forward allowance that can be used from section 2 and the excess contributions that will be subject to the pension savings tax charge.
For more detail on these sections, see below:
Pension contributions for the 2019-20 tax year:
Pension contributions paid net with relief at source: Enter pension contributions paid net with relief at source (on which relief is being claimed on the tax return i.e if you were a higher rate taxpayer)
Pension contributions paid gross without relief at source: Enter pension contributions paid gross without relief at source (on which relief is being claimed on the tax return)
Note: The below boxes in this section are used to record pension contributions made by someone else on your behalf, employer contributions and workplace contributions which would not be entered anywhere else on the tax return (because tax relief on these contributions are not claimed on the tax return), however are a part of this wizard to calculate the total contributions that are in excess of the annual allowance
Contributions made by someone else on your behalf: Use the boxes provided to record pension contributions made by someone else on your behalf
Workplace pension scheme with relief at source:
Salary sacrifice and flexible remuneration contribution: Enter salary sacrifice and flexible remuneration contributions in the boxes provided
Pension contribution summary:
*Note: Annual Allowance is tapered if your Adjusted Income is above £150,000 and if your Threshold Income is above £110,000. Example: if your Threshold Income is £120,000 and Adjusted Income is £170,000. The Annual Allowance will be £40,000 – ((£170,000- £150,000) / 2) = £30,000
To view the calculation of Adjusted and Threshold Income, click on ‘Show calculation’
Unused allowances brought forward:
Note: Annual allowance, Pension contributions and Allowance used are taken from the previous year's tax return upon import (if the wizard was used in the previous year)
2019/20 annual allowance summary:
A) 2019-20 excess contributions: Displays the excess contributions after the annual allowance for the tax year is used (From section 1)
B) Brought forward allowances used against 2019-20: Displays the brought forward allowance that is used against the excess (from section 2)
C) Pension contributions in excess of brought forward allowances: Calculation is C = A minus B.
Note: The annual allowance available in tax year is always utilised first, before any brought forward allowances are used.