I have a few clients who are employed additional rate taxpayers. Both employee and employer contributions are made to an employer pension scheme.
If the maximum annual allowance is restricted to £10k, then any additional contributions should be added back in the tax return or, in fact, not made at all.
Whose responsibility is it to ensure the contributions are within the limit - the taxpayer, the employer, the pension provider or the accountant?
A new client submitted her own tax return and was obviously unaware, yet I believe the limit has been breached. There may be unused relief from prior years, I will ask for this.
HMRC seem to think the pension provider would let the taxpayer know but how would they know the salary? It says you’ll get a statement from your pension provider if you go over the annual allowance.
Any thoughts please?