Pension Tapered Calculator
How the Calculator Works
This calculator helps you understand how the tapered annual allowance affects your pension contributions. It provides:
- Calculation of your threshold and adjusted income
- Determination of your tapered annual allowance
- Identification of any excess contributions
- Estimation of potential tax charges
- Visual representation of your pension position
- Comparison with standard annual allowance
Enter your income details below to calculate your tapered annual allowance.
Key Calculations Explained
Threshold Income
Your threshold income is calculated as:
- Salary + Bonus + Other Income
- Minus your personal pension contributions
- Threshold limit: £200,000 (2023/24)
- Determines if tapering applies
Adjusted Income
Your adjusted income includes:
- Threshold income
- Plus employer pension contributions
- Adjusted limit: £260,000 (2023/24)
- Determines amount of tapering
Tapered Allowance
The tapered allowance is calculated as:
- Standard allowance (£60,000)
- Minus £1 for every £2 over adjusted limit
- Minimum tapered allowance: £10,000
- Applies when both thresholds exceeded
Important Considerations
Tax Year
This calculator uses the 2023/24 tax year rates and thresholds. These may change in future tax years.
Excess Contributions
Contributions above your tapered allowance may be subject to an annual allowance charge. This is added to your taxable income.
Carry Forward
You may be able to use unused annual allowance from the previous three tax years to offset any excess contributions.
Disclaimer: This calculator provides estimates only and should not be considered financial advice. The calculations are based on the information you provide and current tax year rates and thresholds. Actual tax charges and allowances may vary based on your specific circumstances, including other income sources, benefits in kind, and tax code adjustments. Please consult with a qualified tax advisor or accountant for personalized advice regarding your pension contributions and tax position.