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Overpaid into Pension
RPI caught me out and by the time I'd got a DB pension forecast for my 21/22 input from my employer i had paid too much into my AVC (£12k)
My forecast was for £64k but I had a buffer of £16k so knew I was paying tax on £8k.
Fast forward to today and my actual input for 21/22 was £84k!
So does the extra £44k overpayment get added to my yearly earnings?
So far I've not previously had to do a tax return but If so then this puts me well past losing my personal allowance and into 45% tax group.
Presumably HMRC recover this extra tax liability directly but all of what I owe including the pension overpayment or just the amount ive exceeded the £100k?
Comments
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If you go above the annual allowance
You’ll get a statement from your pension provider telling you if you go above the annual allowance in their scheme. If you’re in more than one pension scheme, ask each pension provider for statements.
You can also use a calculator to work out how much you’ve gone above the allowance.
If you go over your annual allowance, either you or your pension provider must pay the tax.
Fill in the ‘Pension savings tax charges’ section of a Self Assessment tax return to tell HMRC about the tax, even if your pension provider pays all or part of it. You’ll need form SA101 if you’re using a paper form.
Source: https://www.gov.uk/tax-on-your-private-pension/annual-allowance
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!2 -
Thanks.
So does the excess pension paid in change my tax code or is it assessed separately?0
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