Pension annual allowance calculator, 2026/27
Directors who pay themselves through a mix of salary and dividends often lose track of the annual allowance until a large employer contribution triggers an unexpected tax charge. Enter your adjusted income and contributions to see your available allowance for 2026/27.
The pension annual allowance calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Standard annual allowance is £60,000, tapering down to a floor of £10,000 once adjusted income exceeds £200,000. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under pensions. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
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Result, 2026/27
Annual allowance available this year
Standard annual allowance applies.Contributions paid in
Amount potentially subject to an annual allowance charge
No excess before carry forward.Remaining headroom before the allowance is used
Illustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
How this is calculated
The standard annual allowance for 2026/27 is £60,000. Where adjusted income exceeds £200,000, the allowance tapers down by £1 for every £2 of income above that threshold, down to a floor of £10,000. This calculator applies that formula directly to the adjusted income you enter.
Separately, once you have flexibly accessed a defined contribution pension, for example by taking an income through drawdown, the money purchase annual allowance of £10,000 replaces the standard allowance for further contributions to money purchase schemes, regardless of your income level.
Any contributions above your available allowance can still be covered using unused allowance carried forward from the three previous tax years, provided you were a member of a registered pension scheme in each of those years, which this simple calculator does not attempt to model.
Why directors get caught out
A director who takes a modest salary but a large dividend, or who has a good year and pays a big employer pension contribution before the company year end, can easily push adjusted income over the taper threshold without realising it, turning what looked like a tax-efficient contribution into a charge.
Employer contributions count in full towards the allowance even though they do not appear on a payslip, so the whole gross amount paid by the company needs to be added to any personal contributions when checking against the limit.
What happens if you go over
Contributions above the available annual allowance, after using any carry forward, are added to your taxable income and charged at your marginal rate, effectively clawing back the tax relief that was given on the excess.
The charge can sometimes be paid from within the pension scheme itself under 'scheme pays' rules if it exceeds certain thresholds, which is worth discussing with an adviser before the contribution is made rather than after.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
What counts as adjusted income?
Broadly your total taxable income for the year, including salary, dividends, rental income and savings interest, plus the value of any pension contributions made by your employer, including your own company.
Can I still use carry forward?
Yes, unused annual allowance from the three previous tax years can be added to this year's allowance, provided you were a member of a registered pension scheme in each of those years. This calculator does not include carry forward automatically.
Does the MPAA apply to me if I have not touched my pension?
No. The money purchase annual allowance only applies once you have flexibly accessed a defined contribution pension, for example by taking a taxable lump sum or income through drawdown. Simply taking your tax-free lump sum does not trigger it.
Is the annual allowance shared across all my pensions?
Yes, it is a single allowance across every registered pension scheme you contribute to or that receives contributions on your behalf, including any employer scheme and a SIPP held alongside it.
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