excess pension contributions

excess pension contributions

Didn't find your answer?

Earnings £12k but conntributed £15k into personal pension. Does the excess get reported in the tax return, if so where, or does the pension provider need to be notified and ask to repay the excess contributions of £3k?

Replies (2)

Please login or register to join the discussion.

avatar
By TaxSpud
14th Dec 2015 17:27

I have also tried to find an answer to this question without much success!

Firstly I presume this is an individual making a personal contribution? If his company had made the payment you could argue it is part of his remuneration package and the excess would be an allowable expense for the company and no tax charge on the director/shareholder.

If chargeable I believe your client should advise his pension company first and see if they will get the excess repaid. If they don't and it remains liable it goes on the additional information supplementary page ai4 'Pension saving tax charges'. I believe there may be occasions when the pension fund can pay or reimburse the tax but not sure without looking it up.

Sorry I can't be more helpful.

 

 

Thanks (0)
Portia profile image
By Portia Nina Levin
14th Dec 2015 17:36

The answer is in HMRC's registered pension scheme manual. http://www.hmrc.gov.uk/manuals/rpsmmanual/index.htm

I cannot be arsed to look for it though. The individual is obliged to notify the pension adminstrator in these circumstances, who is obliged to either pay the appropriate tax over to HMRC or repay the excess contributions.

There is no tax charge on the individual.

Thanks (0)