MPAA and Employers Pension Contributions

ML420cdi

Hello

I cashed in my pension a couple of years ago when I was 55 so have triggered MPAA.

Started working again ...I pay 5% and so does my employer, they also match my 5% so 15% of £44K per year is being contributed = £6,600

So £2,600 over my £4K limit.

What is my liability here?...what tax bill are HMRC going to ask I pay back?...is it 20% of £2,600?

Thanks

Marcon

ML420cdi said:

Hello

I cashed in my pension a couple of years ago when I was 55 so have triggered MPAA.

Started working again ...I pay 5% and so does my employer, they also match my 5% so 15% of £44K per year is being contributed = £6,600

So £2,600 over my £4K limit.

What is my liability here?...what tax bill are HMRC going to ask I pay back?...is it 20% of £2,600?

Thanks

Yes. The tax charge is on your own contributions and on any contributions made on your behalf.

ML420cdi

https://www.ftadviser.com/pensions/2021/09/21/hmrc-unable-to-tell-mpaa-breaches/?page=1

Quite interesting.