Annual Allowance Charge - will it be reflected in Tax Code?

kuratowski

I am employed, and my annual allowance is subject to the taper. Up to and including this tax year, I have had carry-forward allowances available so I haven't yet had to pay any annual allowance charge. However, in future years, I will not have sufficient carry-forward allowance, and even though I will stop making personal pension contributions, my employer's pension contributions are still going to exceed the (tapered) annual allowance. Therefore I expect I will have to pay an annual allowance charge through self assessment.

My question is does HMRC update tax codes for subsequent years to collect the annual allowance charge via PAYE? (I.e., in the same way as they adjust tax codes to give tax relief for personal pension contributions.) I'll find out in due course anyway, but would be nice to know for planning purposes. Thanks

Dazed_and_confused

No.

But if it forms part of your Self Assessment liability then it is possible that that (the Self Assessment liability) could be collected via the tax code.

But the Self Assessment return has to be filed by 30 December for that to be possible i.e. return for 2018:19 filed by 30 December 2019 could allow the 2018:19 tax due to be included in the 2020:21 tax due (subject to normal rules about amounts and your income at that time)

kuratowski

I see - thank you