Over paid into pensions Confusion with annual allowance roll over

zagfles

SunnyBunny said:

Thanks @jamesd very handy to know that if I find myself over the limit.

"A common mistake is adding your DB PIA, your gross DC and SIPP and saying oh dear that's more than my earnings. But if you're an avid reader here you'd know that as it's explained every week "

@zagfles Ha ha - avid reader and understander are perhaps 2 different things!   I've checked my p60 and in all 3 years my taxable pay from employment was higher than the amount I paid into a SIPP including the tax relief - I paid in £25000 in total each year and my taxable pay after salary sacrifice was more than that amount.  

I didn't know about checking the P60 amount and comparing the SIPP contributions so I have learned something new.

Thanks again.

So you haven't exceeded the tax relief limit, so no worries there.

Now just look at the annual allowance. Add your DB PIA to your DC and gross SIPP contributions and use an AA carry forwards calculator like the one I linked earlier. Forget all the stuff above about refunds, that only applies to the tax relief limit. If you've exceeded the AA after carry forwards etc you can't get a refund, you have to declare it on a tax return and pay the charge.

SunnyBunny

I checked via the HL carry forward calculator and it seems that I still have annual allowance to spare for the rest of the year which is good as I was planning to pay a bit extra into my DC pension before the end of this tax year. 

Thanks everyone and @zagfles in particular for the info. 

Given the annual allowance/earnings limits etc is a widely misunderstood subject is it a candidate for a pensions "sticky" or whatever the term is for those items that are listed at the top of the posts - just a thought