What is UK Pension Annual Allowance Calculator?
A UK Pension Annual Allowance Calculator computes uk pension annual allowance from the inputs you provide. It applies the standard formula to the values you enter and returns the result instantly, without sending any data to a server. Standard £60,000, tapered down to £10,000 for £260k+ earners, MPAA £10,000, plus carry forward from 3 prior tax years.
UK Pension Annual Allowance Calculator
Work out your pension annual allowance for 2024-25 and 2025-26. Handles £60,000 standard limit, taper for £260k+ adjusted income, MPAA, and 3-year carry forward.
Standard pension Annual Allowance is £60,000 (2024-25 + 2025-26). For high earners with adjusted income above £260k it tapers down £1 for every £2 over, to a floor of £10,000. If you have drawn flexibly, your MPAA is just £10,000. You can carry forward unused allowance from the prior 3 tax years.
Inputs
Carry forward (last 3 tax years)
How to use it
- Enter threshold income (your taxable income LESS your personal pension contributions). Below £200k means no taper.
- Enter adjusted income (taxable income PLUS all employer pension contributions). Used to taper your AA above £260k.
- Enter contributions made this year (employee + employer + tax relief, all combined).
- Tick MPAA if you have ever drawn pension flexibly (UFPLS or income from drawdown). MPAA caps DC contributions at £10,000.
- Fill in last 3 years’ contributions. Unused allowance from each year (oldest first) is available to carry forward.
About this calculator
The Annual Allowance (AA) is the maximum that can go into your pension in a tax year (employee + employer + tax relief) before triggering a tax charge. Standard AA is £60,000 for 2024-25 and 2025-26 (raised from £40,000 in April 2023).
Tapered AA hits high earners. The taper test fails when threshold income exceeds £200,000 AND adjusted income exceeds £260,000. Above that, AA reduces by £1 for every £2 of adjusted income, down to a floor of £10,000 (reached at £360k of adjusted income).
The Money Purchase Annual Allowance (MPAA) of £10,000 applies once you have flexibly accessed any defined-contribution pension (taking taxable income via drawdown or UFPLS). It does NOT apply if you only took the 25% tax-free lump sum without touching the taxable rest.
Carry forward lets you use unused AA from the previous 3 tax years, but only after fully using the current-year limit. You must have been a member of a UK registered pension scheme in each of those years. Years are consumed oldest-first.
Real-world use cases
Bonus season planning
Big bonus pushing adjusted income near £260k? Carry forward + a single big contribution can shelter the lot from higher-rate tax.
Doctors + GP partners
NHS pension uses pension input amount on accrual not contributions. Many high earners hit AA + taper without realising.
Drawdown + still working
Once you flex-access drawdown, MPAA caps you at £10k/yr. Crucial for over-55s still in PAYE who want to top up.
Self-employed top-up
A great year? Carry forward stacks 4 years of allowance (~£220k+) so a £200k SIPP contribution may all qualify for full tax relief.
What it handles
- Standard AA, tapered AA and MPAA
- 3-year carry forward (oldest year used first)
- Annual Allowance Charge calculation
- 2024-25 + 2025-26 limits
What it does NOT handle
- Defined Benefit (DB) pension input amount calculation - need scheme statement
- Lump Sum Allowance (LSA) £268,275 limit - separate tool
- Net pay vs RAS contribution treatment
- Pension Input Period adjustments (rare since 2016)
Common mistakes
- Confusing threshold income with adjusted income - they use different definitions.
- Forgetting employer contributions count toward your AA usage.
- Trying to use carry forward without having been a scheme member in each prior year.
- Believing MPAA is triggered by taking the 25% tax-free lump sum alone - it is not.
Frequently asked questions
What is the pension Annual Allowance for 2024-25 and 2025-26?
The standard Annual Allowance is £60,000 a year for both 2024-25 and 2025-26. This is the maximum that can be paid into your pensions (you + employer + tax relief) before a tax charge applies.
How does the tapered Annual Allowance work?
If both your threshold income exceeds £200,000 AND your adjusted income exceeds £260,000, the £60,000 AA is reduced by £1 for every £2 of adjusted income above £260,000. The minimum tapered AA is £10,000, reached at adjusted income of £360,000 or more.
What is the Money Purchase Annual Allowance (MPAA)?
The MPAA is a £10,000 cap on annual contributions to defined-contribution pensions, triggered if you have flexibly accessed your DC pension (drawdown income or UFPLS). It does NOT apply if you only took the tax-free 25% lump sum without taking taxable income.
Can I carry forward unused Annual Allowance?
Yes - you can carry forward unused AA from the previous 3 tax years. You must have been a member of a UK registered pension scheme in each of those 3 years. The current year allowance must be fully used first, then prior years are used oldest-first.
What is the difference between threshold and adjusted income?
Threshold income = your total taxable income MINUS your personal pension contributions. Adjusted income = your total taxable income PLUS any employer pension contributions on your behalf. Both must exceed their respective limits (£200k and £260k) for taper to apply.
What happens if I exceed my Annual Allowance?
The excess is added to your taxable income for the year and taxed at your marginal income tax rate via Self Assessment. This is the Annual Allowance Charge. Above £40,000 of charge you can elect "scheme pays" and have your pension scheme pay the charge.
Do my employer’s contributions count toward my Annual Allowance?
Yes. Total pension input from all sources (you + employer + tax relief) counts. This trips up many higher earners with generous employer schemes who only watch their personal contributions.
How does the AA work for defined benefit pensions?
For DB schemes (NHS, Teachers, LGPS, civil service), the contribution figure is the "pension input amount" calculated by the scheme: 16 times the increase in your annual pension above CPI. Your scheme provides this figure on the annual statement.