We are fast approaching the end of another tax year, 5 April 2022.<\/p>\n
To benefit from tax relief for 2021-22 you will need to make any top-up payment on or before this date.<\/p>\n
To help you reach a decision, we have summarised the present tax rules that set out how much you can pay into your fund and still claim tax relief on the contributions made:<\/p>\n
Annual allowance<\/strong><\/p>\n Most taxpayers can pay up to £40,000 a year into their pension schemes. However, this allowance may be reduced if you have a high income or if you have flexibly accessed your pension pot.<\/p>\n Three-year carry back<\/strong><\/p>\n If you use all of your annual allowance for 2021-22, you might be able to carry over any annual allowance you did not use from the previous three tax years. Which means that for 2021-22 once the annual allowance is exhausted you could use unused allowances for 2018-19, 2019-20 and 2020-21.<\/p>\n What if you pay more than your annual allowance?<\/strong><\/p>\n The short answer to this question is that you or your pension provider will have to pay tax.<\/p>\n Exceptionally, this would not apply in the year you retired due to ill health, or if you died…<\/p>\n What about your State Pension?<\/strong><\/p>\n While you are considering your pensions’ funding, don’t forget that it is now possible to check your State Pension forecast online.<\/p>\n You can use this service to find out how much State Pension you could get, when you can get your pension, and how to increase your pension, if you can.<\/p>\n You will need to prove your identity by signing in via your Government Gateway.<\/p>\n