Tax Question

[Frogpig]

Hi everyone, I wonder if there is anyone who understands about pension contributions for tax relief please?
My Husband is just over the limit for higher rate tax for 2021/22 and I know you can carry forward pension contributions for 3 years but wondered if you can use an allowance for a previous tax year if that makes sense? So effectively, increase pension contributions now to offset the 2021/22 tax year?
Thanks in advance!

The 3-year carry forward applies to the annual allowance, which is the most you can pay into a pension in a tax year and get tax relief. For most people it would £40,000 a year - so if you paid in 20k in 2021/22, you could potentially pay in 60k this tax year (and get 40% tax relief on that amount)… but I’m not sure that answers your question. It won’t reduce the amount of tax your husband owes for the 2021/22 tax year (or bring his earnings down to below the 40% rate for that year) but would for the current tax year. At least I think so - not an expert!

You can’t pay into a pension now and back date it to reduce the 21/2 tax - it has to be paid in the same year.

Thank you both, that does answer my question. I thought it was a bit stupid to be able to do it but rules are so complex that it's always worth checking if anyone knows. Thanks again!