Use next year’s allowance now:
· Some individuals may be willing and able to pay more than their 2014/2015 allowance in the current tax year – even after using up all their unused allowance from the 3 carried forward years. To achieve this, you can maximise payments against your 2014/2015 annual allowance, close your 2014/2015 pension input period early and pay an extra £40,000 in this tax year (in respect of the 2015/2016 period).
· This might be sound advice for an individual with particularly high income for 2014/2015 who wants to make the biggest contribution they can with 45% tax relief. Or perhaps the payment could come from a company who has had a particularly good year and wants to reward Directors and Senior Employees, reducing their Corporation Tax bill.