Pension overpayment w/o carry forward

jazid

Hi all,

Due several issues with inflexible salary sacrifice at my workplace, I find myself overpaying by about 2k beyond the annual 40k limit into this year's pension.
 I have already maxed out all previously years contributions, so there I have no carry forward left.

I'm assuming I'm liable for the 50% charge but thought I'd ask here incase anyone has any ideas of a more effective use of my hard earned contributions.


Thanks in advance.

temega463

+ 1. Would be grateful if any forum members have any advice on how to handle with HMRC. I was expecting to declare the overpayment as regular salary, and pay income tax and NI as if I had really taken the salary in the first place. But not sure if HMRC would regard this as appropriate. 

Albermarle

temega463 said:

+ 1. Would be grateful if any forum members have any advice on how to handle with HMRC. I was expecting to declare the overpayment as regular salary, and pay income tax and NI as if I had really taken the salary in the first place. But not sure if HMRC would regard this as appropriate. 

Do you know the allowance has gone up to £60K?

hugheskevi

You declare the Annual Allowance charge via Self Assessment.

This is done using the Additional Information section, and completing the Pension Savings Tax Charges part, box 10 (and 11 and 12 if using Scheme Pays)

temega463

Albermarle - thanks. Sadly yes, I know it went up to 60K.
hugheskevi - thanks. Clear and helpful.