Trailing carry forward?

Anonymous101

Does carry forward need to be reported?
I may go over the £40k contribution level for the first time this year and am planning on doing so 21/22 tax year. I'm just not sure that I need to do anything about it or just be aware of where I stand should I be questioned?

bowlhead99

Anonymous101 said:

Does carry forward need to be reported?

No, you don't need to report it, just keep records of how you got comfortable that you were ok to use it.

Depending on the type of pensions you have it may be obvious from your tax return that you are contributing more than your standard annual allowance. But it's a self assessment process - if they wonder how you concluded that you had sufficient carry-forward to be able to do that, they can ask for your workings. 

or just be aware of where I stand should I be questioned?

Yes, that.

Anonymous101

bowlhead99 said:

Anonymous101 said:

Does carry forward need to be reported?

No, you don't need to report it, just keep records of how you got comfortable that you were ok to use it.

Depending on the type of pensions you have it may be obvious from your tax return that you are contributing more than your standard annual allowance. But it's a self assessment process - if they wonder how you concluded that you had sufficient carry-forward to be able to do that, they can ask for your workings. 

or just be aware of where I stand should I be questioned?

Yes, that.

Thanks. I contribute via SalSac and haven't as yet had to fill in a self assessment, my tax is still all managed through PAYE and a few supplementary forms. This year it may still appear to HMRC that I am contributing less than the £40k if they do not have sight of the employer contributions. Next year I feel my personal contributions alone could be over the annual allowance so it will be obvious. I keep good records though so I'm happy I could satisfy any questioning.

Albermarle

Anonymous101 said:

bowlhead99 said:

Anonymous101 said:

Does carry forward need to be reported?

No, you don't need to report it, just keep records of how you got comfortable that you were ok to use it.

Depending on the type of pensions you have it may be obvious from your tax return that you are contributing more than your standard annual allowance. But it's a self assessment process - if they wonder how you concluded that you had sufficient carry-forward to be able to do that, they can ask for your workings. 

or just be aware of where I stand should I be questioned?

Yes, that.

Thanks. I contribute via SalSac and haven't as yet had to fill in a self assessment, my tax is still all managed through PAYE and a few supplementary forms. This year it may still appear to HMRC that I am contributing less than the £40k if they do not have sight of the employer contributions. Next year I feel my personal contributions alone could be over the annual allowance so it will be obvious. I keep good records though so I'm happy I could satisfy any questioning.

If you contribute via salsac , there are only employer contributions to your pension.
The pension provider gets just one payment each month as an employer contribution. So if there is more than £40K going into your pension in a tax year it will be very obvious. Probably the provider will send you a friendly warning about it. 

Anonymous101

Albermarle said:

Anonymous101 said:

bowlhead99 said:

Anonymous101 said:

Does carry forward need to be reported?

No, you don't need to report it, just keep records of how you got comfortable that you were ok to use it.

Depending on the type of pensions you have it may be obvious from your tax return that you are contributing more than your standard annual allowance. But it's a self assessment process - if they wonder how you concluded that you had sufficient carry-forward to be able to do that, they can ask for your workings. 

or just be aware of where I stand should I be questioned?

Yes, that.

Thanks. I contribute via SalSac and haven't as yet had to fill in a self assessment, my tax is still all managed through PAYE and a few supplementary forms. This year it may still appear to HMRC that I am contributing less than the £40k if they do not have sight of the employer contributions. Next year I feel my personal contributions alone could be over the annual allowance so it will be obvious. I keep good records though so I'm happy I could satisfy any questioning.

If you contribute via salsac , there are only employer contributions to your pension.
The pension provider gets just one payment each month as an employer contribution. So if there is more than £40K going into your pension in a tax year it will be very obvious. Probably the provider will send you a friendly warning about it. 

True, but those don't show on my payslips, only my element of the contribution which shows as a deduction.
I'm not aware of the detail that HMRC receive behind the payment amounts, or whether they receive anything from the pensions companies? I know they don't receive anything from some legacy pensions as I have to tell them about my small contribution to cover some fees every year. I take it that they are only really interested in the bottom line numbers of PAYE.

zagfles

Anonymous101 said:

Albermarle said:

Anonymous101 said:

bowlhead99 said:

Anonymous101 said:

Does carry forward need to be reported?

No, you don't need to report it, just keep records of how you got comfortable that you were ok to use it.

Depending on the type of pensions you have it may be obvious from your tax return that you are contributing more than your standard annual allowance. But it's a self assessment process - if they wonder how you concluded that you had sufficient carry-forward to be able to do that, they can ask for your workings. 

or just be aware of where I stand should I be questioned?

Yes, that.

Thanks. I contribute via SalSac and haven't as yet had to fill in a self assessment, my tax is still all managed through PAYE and a few supplementary forms. This year it may still appear to HMRC that I am contributing less than the £40k if they do not have sight of the employer contributions. Next year I feel my personal contributions alone could be over the annual allowance so it will be obvious. I keep good records though so I'm happy I could satisfy any questioning.

If you contribute via salsac , there are only employer contributions to your pension.
The pension provider gets just one payment each month as an employer contribution. So if there is more than £40K going into your pension in a tax year it will be very obvious. Probably the provider will send you a friendly warning about it. 

True, but those don't show on my payslips, only my element of the contribution which shows as a deduction.
I'm not aware of the detail that HMRC receive behind the payment amounts, or whether they receive anything from the pensions companies? I know they don't receive anything from some legacy pensions as I have to tell them about my small contribution to cover some fees every year. I take it that they are only really interested in the bottom line numbers of PAYE.

The scheme has to tell the member and HMRC if the annual allowance is exceeded in that scheme in the tax year. Of course this doesn't mean a charge is due if carry forwards is used, and it's possible to exceed the AA via two or more schemes without exceeding it in any one scheme.