SIPP - using previous year's allowance

monkey-fingers

I'm in a fortunate(?) situation in that I was made redundant last year. I was given a huge chunk of redundancy pay which I put into my company pension.

I've since been heavily overpaying into a new SIPP (directly from my company) which will take me over the £60k limit this year.

I know it's probably not that unusual, but it's a bit messy.

How do I report all of this? April will be my first year of using self-assessment.

Albermarle

You do not have to report it, if the Annual Allowance is the only issue.
You just have to carefully calculate yourself how much unused allowance you can bring forward, and just keep a record in case HMRC ever ask. Keep in mind it was only £40K until a couple of years ago, and the allowance includes employer contributions and tax relief as well

Also if all your workplace contributions were/are paid before tax was taken, or by salary sacrifice, then you do not need to put these in your SA either. 

I think that is all correct but best to wait for more replies to be sure.

DRS1

When you say April will be your first year of self assessment do you mean you will be doing a return for this current tax year (25/6) or do you mean you will eventually be doing on for 26/7?

monkey-fingers

DRS1 said:

When you say April will be your first year of self assessment do you mean you will be doing a return for this current tax year (25/6) or do you mean you will eventually be doing on for 26/7?

I'll be doing a SA in April (which I believe has to be done before the end of next Jan - I'll have it done by end of April anyway)

monkey-fingers

Albermarle said:

You do not have to report it, if the Annual Allowance is the only issue.
You just have to carefully calculate yourself how much unused allowance you can bring forward, and just keep a record in case HMRC ever ask. Keep in mind it was only £40K until a couple of years ago, and the allowance includes employer contributions and tax relief as well

Also if all your workplace contributions were/are paid before tax was taken, or by salary sacrifice, then you do not need to put these in your SA either. 

I think that is all correct but best to wait for more replies to be sure.

Yes, thank you. Workplace contributions were salary sacrificed and partially matched, although only for 4 months.

To put into context, I put around £10k in last year. I'll be putting around £75k in this year. We're not talking about maxing the contributions forever. I'm forecast to put in max £50k next year.

Albermarle

monkey-fingers said:

Albermarle said:

You do not have to report it, if the Annual Allowance is the only issue.
You just have to carefully calculate yourself how much unused allowance you can bring forward, and just keep a record in case HMRC ever ask. Keep in mind it was only £40K until a couple of years ago, and the allowance includes employer contributions and tax relief as well

Also if all your workplace contributions were/are paid before tax was taken, or by salary sacrifice, then you do not need to put these in your SA either. 

I think that is all correct but best to wait for more replies to be sure.

Yes, thank you. Workplace contributions were salary sacrificed and partially matched, although only for 4 months.

To put into context, I put around £10k in last year. I'll be putting around £75k in this year. We're not talking about maxing the contributions forever. I'm forecast to put in max £50k next year.

Presumably you have a sufficiently high salary to be able to add £75K in this tax year ?

DRS1

monkey-fingers said:

Albermarle said:

You do not have to report it, if the Annual Allowance is the only issue.
You just have to carefully calculate yourself how much unused allowance you can bring forward, and just keep a record in case HMRC ever ask. Keep in mind it was only £40K until a couple of years ago, and the allowance includes employer contributions and tax relief as well

Also if all your workplace contributions were/are paid before tax was taken, or by salary sacrifice, then you do not need to put these in your SA either. 

I think that is all correct but best to wait for more replies to be sure.

Yes, thank you. Workplace contributions were salary sacrificed and partially matched, although only for 4 months.

To put into context, I put around £10k in last year. I'll be putting around £75k in this year. We're not talking about maxing the contributions forever. I'm forecast to put in max £50k next year.

I may be wrong but I thought the only contributions you report in your self assessment are the relief at source ones (or those ones which are your personal contributions but where the scheme did not reclaim the basic rate tax for some reason).  If the contributions were done by salary sacrifice they are not YOUR personal contributions so don't go in the tax return.

There are separate boxes for where you have gone over the annual allowance. Under Pensions Savings Tax Charges.  But if you are sure you are covered by carry forward of unused previous years allowances then you don't put anything in there. 

monkey-fingers

Albermarle said:

monkey-fingers said:

Albermarle said:

You do not have to report it, if the Annual Allowance is the only issue.
You just have to carefully calculate yourself how much unused allowance you can bring forward, and just keep a record in case HMRC ever ask. Keep in mind it was only £40K until a couple of years ago, and the allowance includes employer contributions and tax relief as well

Also if all your workplace contributions were/are paid before tax was taken, or by salary sacrifice, then you do not need to put these in your SA either. 

I think that is all correct but best to wait for more replies to be sure.

Yes, thank you. Workplace contributions were salary sacrificed and partially matched, although only for 4 months.

To put into context, I put around £10k in last year. I'll be putting around £75k in this year. We're not talking about maxing the contributions forever. I'm forecast to put in max £50k next year.

Presumably you have a sufficiently high salary to be able to add £75K in this tax year ?

Not so much high salary, but as above, I was made redundant and put everything over £30k in my pension for tax purposes.
I'm now working as a contractor and don't have high income requirements, so I put more in my pension than I pay myself. Again, tax efficient. I'm in my 50s and very keen to ensure I have a half decent pension.