Making additional payments into SIPP

PaulCooper

Just a comment on my overpayment. On the figures given by my SIPP provider, I overpaid into my SIPP (not in excess of my salary), sometime later the SIPP provider realised and advised me. At the time I was using an accountant to do my tax return, we redid my tax return and advised HMRC, I had underpaid tax by just over £2k and that the SIPP would repay the tax.

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all good so far. I asked the SIPP provider to pay HMRC the £2k, they said they can't do that without a request from HMRC and that is where it got left, my SIPP still owes HMRC £2k from 2 years ago. No doubt someone will realise at some point and I'll be the bad guy
Paul

zagfles

EdSwippet wrote: »

Right, thanks. Treating both the way that excess over annual allowance won't work.

But treating both the way that excess over salary would, I think. A simple refund of excess contributions. No complicated tax charges. No punitive double-tax outcomes. No foul interaction with the insane taper rules. Pure unwinding. That was the sort of symmetry I had in mind. And it's not clear, at least to me, why HMRC sees this as undesirable. Shrug.

Though in some ways the AA treatment is more favourable for instance allowing carry forwards. No carry forwards allowed for the earned income limit.