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Pension Annual Allowance Calculator

Check if your pension contributions are within the 2025/26 Annual Allowance of £60,000. Calculate tapered AA for high earners, MPAA if you've accessed your pension, and carry forward unused allowance from previous years.

£
Employee + employer contributions combined
£
Used to calculate your marginal tax rate for any charge
No
Have you flexibly accessed your pension (e.g. drawdown)?

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How to Use This Calculator

AA Check tab

Enter your total pension contributions for the tax year (employee + employer combined) and your annual salary. Toggle the MPAA if you have flexibly accessed your pension (e.g. taken drawdown income). The calculator shows whether you are within or over your Annual Allowance, your remaining headroom, and any Annual Allowance charge at your marginal tax rate.

Taper Check tab

Enter your threshold income (gross income minus personal pension contributions) and adjusted income (threshold income plus employer contributions). The calculator tests both conditions — threshold income over £200,000 AND adjusted income over £260,000 — and calculates your tapered Annual Allowance. The taper reduces the AA by £1 for every £2 over £260,000, down to a minimum of £10,000.

Carry Forward tab

Enter your unused Annual Allowance from the previous 3 tax years and toggle whether you were a registered pension scheme member in each year. The calculator adds your carry forward to this year’s £60,000 allowance and shows your total available headroom for a large one-off contribution.

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The Formula

The Annual Allowance limits the total pension contributions that benefit from tax relief each year:

Annual Allowance = £60,000 (standard, 2025/26)

If MPAA triggered: AA = £10,000 (money purchase only)

Tapered AA = £60,000 − ((Adjusted Income − £260,000) ÷ 2)
Minimum tapered AA = £10,000 (at £360,000+ adjusted income)

Carry Forward = Current year AA + Unused AA from previous 3 years

AA Charge = Excess × Marginal Income Tax Rate

The taper only applies when both conditions are met: threshold income exceeds £200,000 AND adjusted income exceeds £260,000. If either condition fails, the full £60,000 allowance applies.

The Annual Allowance charge is effectively taxed as additional income at your marginal rate (20%, 40%, or 45%), reported via Self Assessment.

Example

James — higher-rate taxpayer with large employer contributions

James earns £95,000 and his employer contributes 15% of salary to his pension. He also makes personal contributions via salary sacrifice.

Step 1: Total contributions

Employer contribution (15%)£14,250
Employee salary sacrifice£20,000
Total pension input£34,250

Step 2: AA check

Annual Allowance (2025/26)£60,000
Total contributions£34,250
Remaining allowance£25,750
StatusWithin allowance

Step 3: Carry forward opportunity

Unused AA 2022/23 (AA was £40K)£15,000
Unused AA 2023/24£30,000
Unused AA 2024/25£25,000
Total carry forward£70,000
Max contribution this year£130,000

James is comfortably within his standard AA. If he wanted to make a one-off large contribution (e.g. from a bonus or inheritance), he could contribute up to £130,000 this year using carry forward, provided he was a pension member in each of the prior 3 years.

FAQ

The Annual Allowance (AA) is the maximum amount of pension contributions that benefit from tax relief in a single tax year. For 2025/26, the standard AA is £60,000. This includes employee contributions, employer contributions, and any personal contributions. If your total pension inputs exceed the AA, you must pay an Annual Allowance charge on the excess, which is taxed at your marginal income tax rate. The charge is reported and paid via Self Assessment.
The MPAA is a reduced Annual Allowance of £10,000 that applies once you have flexibly accessed your defined contribution (money purchase) pension. This includes taking income via flexi-access drawdown, receiving an uncrystallised funds pension lump sum (UFPLS), or taking more than the tax-free cash from a drawdown arrangement. Taking a tax-free lump sum alone, or receiving income from a defined benefit scheme, does not trigger the MPAA. Once triggered, the MPAA applies for the rest of your lifetime.
The tapered AA reduces the standard £60,000 allowance for high earners. It applies when both your threshold income exceeds £200,000 and your adjusted income exceeds £260,000. The AA is reduced by £1 for every £2 of adjusted income above £260,000, down to a minimum of £10,000 (reached at £360,000 adjusted income). Threshold income is your gross income minus personal pension contributions. Adjusted income is threshold income plus employer pension contributions. Salary sacrifice can help reduce threshold income.
Carry forward allows you to use unused Annual Allowance from the previous 3 tax years. You must have been a member of a registered UK pension scheme in each year you want to carry forward from. You use your current year’s allowance first, then carry forward in chronological order (oldest year first). For 2025/26, you can carry forward from 2022/23 (AA was £40,000), 2023/24 (£60,000), and 2024/25 (£60,000). Carry forward does not apply to the MPAA — if you have triggered the MPAA, money purchase contributions are limited to £10,000 regardless.
Scheme Pays is an option where your pension scheme pays your Annual Allowance charge on your behalf, in exchange for a corresponding reduction in your pension benefits. You have a legal right to use Scheme Pays if your AA charge exceeds £2,000 and your pension input to that scheme exceeds £60,000. Your scheme may also offer voluntary Scheme Pays for smaller charges. The deadline to elect Scheme Pays is 31 July following the end of the tax year (e.g. 31 July 2027 for the 2025/26 tax year). This can be useful if you don’t have cash available to pay the charge directly.

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