Overpaid into SIPP: how to set it right?

DRS1

My instinct would be to ask for the excess to be refunded this tax year and then report the correct(ed) amount in her tax return as the contribution but that is not based on any knowledge of what HMRC would regard as the right approach just the one least likely to prompt a question.  When talking to the SIPP provider it might be an idea to ask them what they think she should do and what (if anything) they report to HMRC.

Of course that does assume she knows she won't be getting any more earned income this tax year.

aroominyork

Thanks All. I'm surprised there isn't an accepted process given how common a situation this must be, eg when people unexpectedly leave their job during the year. 

Dazed_and_C0nfused

aroominyork said:

Thanks All. I'm surprised there isn't an accepted process given how common a situation this must be, eg when people unexpectedly leave their job during the year. 

There is, it was in the first reply to this thread.

zagfles

DRS1 said:

My instinct would be to ask for the excess to be refunded this tax year and then report the correct(ed) amount in her tax return as the contribution but that is not based on any knowledge of what HMRC would regard as the right approach just the one least likely to prompt a question.  When talking to the SIPP provider it might be an idea to ask them what they think she should do and what (if anything) they report to HMRC.

Of course that does assume she knows she won't be getting any more earned income this tax year.

I wouldn't have thought any pension provider would allow that, because can't know for sure that she won't have any more earnings in the current tax year, and if she does then they've made an unauthorised payment. Be interesting to hear from someone who's done this, and what if any proof the pension provider requires as to earnings.