Over-contributing to SIPP?

Marcon

conradmum said:

A related question: What happens if I don't achieve my predicted income but a lower amount? Then I will have fraudulently claimed excess tax relief, right? 

Wrong. Fraud requires an intention to deceive. This is just incompetence! You wouldn't get the extra tax relief, obviously.

Albermarle

Fraudulently is a bit strong - it would just be seen as a miscalculation and you would have to sort out paying some tax relief back .
To avoid this pay in some of the £20K now, but not all of it . By March I presume you will have an accurate idea of your earnings and then you can make a final top up before the tax year ends and/or wait until the next tax year .

bigadaj

If you wait until towards the end of the tax year you should presumably have a better idea of gross earnings. You could also presumably contribute a smaller amount this year and then do the balance next year. If you do over claim it won't be fraud, you'll just have to notify your pension provider and possibly hmrc and pay back the excess tax relief. 

conradmum

Thanks, I'll pay in some now and some more towards the end of the tax year. That sounds the most straightforward option.

zagfles

If you put in more than 100% (gross) of relevant earnings you can ask the SIPP provider for a refund of the excess.

See https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm045000#Refundecls

dunstonh

conradmum said:

A related question: What happens if I don't achieve my predicted income but a lower amount? Then I will have fraudulently claimed excess tax relief, right? 

Many self employed will pay a regular stable amount that they know is within limits and then pay an ad-hoc single payment at the end of their business year once they know what they have earned.