The Lemon Fool

Does anybody know if you have to tell HMRC that you plan to use the carry forward allowance? Or do you just plough through the annual allowance limit and hope it all works out in the wash?

Hypster wrote:Does anybody know if you have to tell HMRC that you plan to use the carry forward allowance? Or do you just plough through the annual allowance limit and hope it all works out in the wash?

You don't need to report use of carry-forward to HMRC - they should be able to work it out themselves as you will be making contributions in excess of the annual allowance.

https://www.pruadviser.co.uk/knowledge-literature/knowledge-library/annual-allowance-carry-forward/#

There is no requirement to claim carry forward or make an election to use carry forward. However, it is prudent to keep a record of when carry forward is being used in case HMRC require evidence to support tax returns.

https://www.gov.uk/guidance/check-if-you-have-unused-annual-allowances-on-your-pension-savings#carry-forward-your-unused-annual-allowance

You can carry forward unused annual allowances from the 3 previous tax years. You do not need to report this to HMRC.

It is worth checking your calculations very carefully. Also if any contributions relate to an employer scheme or through pay deductions check that contribution period are aligned with the tax year, I had a situation some years ago where 13 contributions went in one tax year and 11 the next, took a lot of working out.....

Thank you for the replies, that's great to know!