Max Pension Contribution Check

Somebody

What happens if you have employer contributions towards a DB pension scheme via salary sacrifice, and also made contributions to a SIPP?  How does HMRC know the Pension Input Amount from the DB scheme, plus the SIPP gross contributions, is below your AA?   

Thrugelmir

idontknow2 said:

 Having said that... when I rang them today and asked them to check a few things they asked me to put it in writing... so as I say "low tech" :-) 

Been a number of threads recently where posters seem to expect the HMRC to provide administration services for free. The HMRC has access to what they need to fulfill their function. 

zagfles

Somebody said:

What happens if you have employer contributions towards a DB pension scheme via salary sacrifice, and also made contributions to a SIPP?  How does HMRC know the Pension Input Amount from the DB scheme, plus the SIPP gross contributions, is below your AA?   

I think the pension schemes will only automatically report to HMRC if the PIAs individually are over the AA (ignoring carry forwards), but obviously there will be the ability to check if the combined total is over the AA as the schemes need to calculate the PIAs to determine whether or not they need to report

idontknow2

Thrugelmir said:

idontknow2 said:

 Having said that... when I rang them today and asked them to check a few things they asked me to put it in writing... so as I say "low tech" :-) 

Been a number of threads recently where posters seem to expect the HMRC to provide administration services for free. The HMRC has access to what they need to fulfill their function. 

TBH I thought it would be of use to HMRC if everyone had access to this information so they could avoid falling foul of any requirements.  HMRC provide online services for lots of things and I am sure this will eventually be one of them.  Also, it is not for free as a tax payer I fund the HMRC.
If, as a few posters have said, this information is available to the HMRC (which was the original point) then it would be easy to allow access to it for the masses.

Grumpy_chap

idontknow2 said:

I am aware of the 40k max and the I believe you can utilise up to 3 years contribution levels

It is actually a maximum of 4 years contribution allowance that can be used in one tax year - the current tax year plus unused allowances from the previous three tax years.  For the next few days that means:

• 2018-19
• 2019-20
• 2020-21
• 2021-22

It could be up to £160k if there have been no prior contribution allowance used.  Employer contributions are unlimited (up to the contribution allowance) but employee / personal contributions are capped at 100% of this year's earnings (which do not carry forward from the past).

Exceeding the contribution allowance does not benefit from the tax advantages but is still permitted.

idontknow2

Thanks, I thought the 3 years included the current year.  So after midnight Tuesday I can go back to 2019/20?  I worked out using my pen/pencil etc that I have 7k left over the last 3 years so this opens things up a bit for the big push this year :-) Many thanks for the information, much appreciated @Grumpy_chap much appreciated!