Alpha Civil Service Pension Annual Allowance Calculation Validation

capsy87

Be prepared to have hassle with HMRC with this as stated by others. I bought additional pension via a lump sum in the CS pension and ended up being told twice by HMRC that I wasn't entitled to claim back any tax relief, despite having a clear letter from CS pensions that no tax relief had been applied. Ended up putting in a complaint and quoting from the HRMC manual to get the tax refunded. Got there in the end but it was painful and frustrating. 

Universidad

Just out of interest, if you buy Added Pension out of salary, on a monthly basis, which exceeds the Annual Allowance - how does this get handled?

I know that the Civil Service Pension will send you a Pension Savints Statement automatically if this happens.

But what comes next, assuming that you can carry forwards from previous years?

I know that you would be able to set up a voluntary payment with the employer, and if you had a large bill, it would be mandatory.

But how do you represent that you actually haven't exceeded the allowance, when accounting for carry forward, without winding up in trouble with the tax man, or being forced to pay tax you don't owe?

Can't seem to find any clear steps for that.

hugheskevi

Nothing at all happens if you exceed Annual Allowance but have sufficient carry-forward to mean that no charge is due.

The scheme administrator sends you a Pension Saving Statement, you check that you have no charge to pay, and that is the end of the process - you do not have to tell either the scheme nor HMRC anything at all if you do not have a charge to pay.

It is wise, but not mandatory, to keep details of your calculations just in case HMRC make inquiries in the future - but that is very unlikely anyhow.