Pension Carry Forward

sometime_soon

https://forums.moneysavingexpert.com/discussion/comment/82013471#Comment_82013471

Absolutely . Self employed so you really never know or take for granted but hope to be at least the same.

sometime_soon

https://forums.moneysavingexpert.com/discussion/comment/82013471#Comment_82013471

As an assumption only, about the same.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82013459#Comment_82013459

I am intrigued by what happens if a self employed person does their tax return and reports taxable profits for the year of £90k and a gross pension contribution of £120k. Does HMRC say anything about that to anyone? Do they require the individual to take a refund of the excess contributions or is it just up to the pension scheme to say we can't accept pension contributions which don't get tax relief so please take the excess back?

And if you have a pension scheme which does accept non tax relievable pension contributions do they make you tell them what the excess is so that they don't mistakenly claim basic rate relief that they are not entitled to? Or do HMRC and the scheme sort it out between them? Or is there basic rate tax relief being claimed when it shouldn't be?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82013562#Comment_82013562

 or is it just up to the pension scheme to say we can't accept pension contributions which don't get tax relief so please take the excess back?

The pension provider has no idea of their clients income, or if they have contributed to another pension. They just automatically add on basic rate relief. They would only know there was a problem if the client, or HMRC told them.

I presume at some point HMRC would see a mismatch in their system between tax relief paid out, and the gross income of that person.

Or is there basic rate tax relief being claimed when it shouldn't be?

I am sure there is plenty claimed that should not be, mainly due to misunderstanding the rules. How much of that slips through the net, I have no idea.

And if you have a pension scheme which does accept non tax relievable pension contributions do they make you tell them what the excess is so that they don't mistakenly claim basic rate relief that they are not entitled to?

AFAIK mainstream providers will not accept non tax relievable contributions. Maybe some specialist platforms for IFA's will, but the demand for such a service must be extremely low and probably needs some manual input.

MDMD

https://forums.moneysavingexpert.com/discussion/comment/82013562#Comment_82013562

Under Self Assessment they would be required to determine this and declare on their return, HMRC would assess a penalty if they detect this and adjust the return

https://www.gov.uk/government/publications/pensions-tax-charges-on-any-excess-over-the-lifetime-allowance-annual-allowance-special-annual-allowance-and-on-unauthorised-payments-hs345-self/hs345-pension-savings-tax-charges-2026#boxes-10-and-11-annual-allowance-charge

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82013750#Comment_82013750

That is the annual allowance bit - in this scenario the taxpayer is not over the annual allowance because he is using carry forward from 23/4. But he would be over the tax relief limit because he does not have taxable earnings/profits of £120k only £90k.