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Silly question on pension allowance
Comments
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You don't need to inform the provider.
They would not pay the excess direct to HMRC without confirming with you first. (If indeed, they would at all).I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0 -
You don't need to inform the provider.
Only the provider can sort this out, they must see this regularly.0 -
I don't mind paying the extra. What I don't want to happen is the the provider pays back the tax and I then pay it over. Effectively twice , if you see what I mean0
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greenglide wrote: »But surely the excess money, even without tax relief, cannot remain in the pension otherwise when it is crystallised it will attract 25% PCLS to which it is not entitled? Having said that the other 75% would be subject to tax which it shouldn't be.
Only the provider can sort this out, they must see this regularly.
So what about the 25% PCLS - if it's not had tax relief going in then it's like putting the money in an ISA. And the 75% will get taxed twice!0 -
So in effect I managed to quote stupidly lose out the benefit of tax relief and get taxed on the amount in my pension twice ! Great0
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Just picking up on the "silly question" which wasn't silly at all, if the OP was in an employers scheme and the total put into the pension by the employer including employees contribution is £32k then wouldn't that include the tax allowances as thats been taken care of by adjusting tax code?
So, if at the end of the year £32k has been contributed to the pension scheme, that is gross, and so there is still £8k left so the employee could still put in £8k gross?
Or did I misunderstand? I'm thinking of most employers schemes, including my own, where the deduction is made before tax, so what i see going into my DC fund each month is what the gross amount is?0 -
I think I will ask for it back from the fund manager. It's so confusing when I was reading up about this I could not find any references that the £40k was gross of tax. Should have asked before I jumped, sigh0
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AnotherJoe wrote: »Just picking up on the "silly question" which wasn't silly at all, if the OP was in an employers scheme and the total put into the pension by the employer including employees contribution is £32k then wouldn't that include the tax allowances as thats been taken care of by adjusting tax code?
So, if at the end of the year £32k has been contributed to the pension scheme, that is gross, and so there is still £8k left so the employee could still put in £8k gross?
Or did I misunderstand? I'm thinking of most employers schemes, including my own, where the deduction is made before tax, so what i see going into my DC fund each month is what the gross amount is?0 -
I think I will ask for it back from the fund manager. It's so confusing when I was reading up about this I could not find any references that the £40k was gross of tax. Should have asked before I jumped, sigh
What exactly did you contribute to what type of pension? What were your earnings?0
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