Paid in +£40K

trevjl

In April I decided to pay in a lump sum into my DC workplace pension with Aviva as it was the last tax year of full time employment. I paid in about £23K to bring me up to what I thought was just shy of the £40K.
Now I have received a letter from Aviva telling me I paid in £45,341.92 and may be liable for tax. I don't know where I made a schoolboy error but probably something to do with my workplace pension being a smart pension whereby it is paid prior to tax is deducted from my wages.
Am I right in thinking I can carry forward 3 years allowance as in those years I only paid in £15K,£16K & £14K ?
If that id correct do I ignore it or do I have to tell HMRC ?
TIA

wjr4

What were your relevant earnings? Eg gross employment income. 

Albermarle

Am I right in thinking I can carry forward 3 years allowance as in those years I only paid in £15K,£16K & £14K ?
If that id correct do I ignore it or do I have to tell HMRC ?

You will be OK and no need to contact HMRC, as long as your gross salary in this tax year was high enough that you did not get more tax relief than you were entitled to ( hence the question in the previous post ).

Marcon

trevjl said:

In April I decided to pay in a lump sum into my DC workplace pension with Aviva as it was the last tax year of full time employment. I paid in about £23K to bring me up to what I thought was just shy of the £40K.
Now I have received a letter from Aviva telling me I paid in £45,341.92 and may be liable for tax. I don't know where I made a schoolboy error but probably something to do with my workplace pension being a smart pension whereby it is paid prior to tax is deducted from my wages.

A smart pension is generally one where contributions are made by salary sacrifice. What you're describing is a 'net pay' (misleading terminology or what!) arrangement.

trevjl

Thanks all
I was off sick for 6 months so my earnings were £49K and I paid £7.1K tax, is that enough ?
Yes "net pay" was what I was referring to.

Albermarle

trevjl said:

Thanks all
I was off sick for 6 months so my earnings were £49K and I paid £7.1K tax, is that enough ?
Yes "net pay" was what I was referring to.

It does not matter how much tax you actually paid ( as this could be affected by other things like rental income or benefits in kind) As long as you did not contribute more than £49K including tax relief you are OK.
Presume the £45K paid in included employer contributions so looks like you have not overpaid your own contributions,