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Where Taxpayers and Advisers Meet

Excessive SIPP contribution made in error

EF101
Posts:27
Joined:Fri Oct 30, 2015 12:26 am
Excessive SIPP contribution made in error

Postby EF101 » Mon Jan 23, 2017 5:43 pm

During the period April 2015 - April 2016 I made a contribution of £80,000 to my SIPP. After the year end I received a letter from my SIPP provider telling me that as this had been made let on in the year, I only had an allowance of £40,000 and that helf the contribution was therefore in excess over my allowance.

I have a couple of questions: First, should I be entitled to repayment of the excess element where the payment was made in error ?

Second, and assuming not I have been completing my Self Assessment return and notice that there is a box "Amount saved towards your pension in excess of the Annual Allowance". I have assumed that I should include the excess £40,000 in this box and have done so (but not yet submitted the return). However, looking at the detailed tax calculation this item does not seem to have affected the amount owed, and I have still been given credit for the full £40,000 of my allowance. The excess payment therefore seems to have been tax neural. Is that correct ?

I have no idea whether it makes any difference, but I also took my 25% lump sum tax free entitlement (possibly wrongly calcualted if the full £80,000 should not have been in the SIPP ??) - but that is probably another story) during that year. From what I can see I do NOT need to enter this fact anywhere on the return (assuming I did not withdraw more than the 25% that I was entitled to). Is that correct ?

Any help very gratefully appreciated !!

EF101
Posts:27
Joined:Fri Oct 30, 2015 12:26 am

Re: Excessive SIPP contribution made in error

Postby EF101 » Thu Jan 26, 2017 5:55 pm

I have the answer to this question, so the topic can be closed (as I suspected, the excess payment cannot be recovered).

section 44
Posts:4467
Joined:Thu Oct 30, 2008 12:47 pm

Re: Excessive SIPP contribution made in error

Postby section 44 » Thu Jan 26, 2017 6:52 pm

presumably you're aware that you carry forward unused allowances from last 3 years

EF101
Posts:27
Joined:Fri Oct 30, 2015 12:26 am

Re: Excessive SIPP contribution made in error

Postby EF101 » Thu Jan 26, 2017 6:55 pm

presumably you're aware that you carry forward unused allowances from last 3 years
Yes I am, but sadly I have no unused allowances !

jason13
Posts:153
Joined:Mon Mar 28, 2011 2:02 pm

Re: Excessive SIPP contribution made in error

Postby jason13 » Fri Jan 27, 2017 6:09 am

Are you aware that 2015-16 consisted of 2 mini tax years for the purpose of the annual allowance?

See Chapter 2 at https://www.gov.uk/government/publicati ... ut-periods

EF101
Posts:27
Joined:Fri Oct 30, 2015 12:26 am

Re: Excessive SIPP contribution made in error

Postby EF101 » Sat Jan 28, 2017 12:21 pm

Are you aware that 2015-16 consisted of 2 mini tax years for the purpose of the annual allowance?

See Chapter 2 at https://www.gov.uk/government/publicati ... ut-periods
Yes, I am (now) aware of this and this is where I went wrong !


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