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Where Taxpayers and Advisers Meet

Self assessment form and excess pension contributions

EF101
Posts:27
Joined:Fri Oct 30, 2015 12:26 am
Self assessment form and excess pension contributions

Postby EF101 » Thu Jan 26, 2017 6:03 pm

During the 2015/16 tax year I made net contributions to my SIP of £64,000, amounting to a total gross contribution (with the basic rate tax reclaim) of £80,000.

However, this was an error on my part as my allowable contribution for that year was only £40,000.

I am filling in my self-assessment form online and have shown in the box for contributions made the gross amount of £80,000.

In the box "Amount saved towards your pension, in the period covered by this return, in excess of the Annual Allowance" I have stated the amount by which the total contributions exceeded the Allowable Maximum (i.e. £40,000 as the excess).

In the detailed calculation, I have been given the full additional personal allowance for the £80,000 contribution BUT no liability is showing for the excess £40,000 contribution over my allowable amount. This seems odd ! Am I doing something wrong here ??

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

Re: Self assessment form and excess pension contributions

Postby EF101 » Thu Jan 26, 2017 6:57 pm

As I can't work out how to edit the above post, I wanted to clarify that it is not the personal allowance that has been increased by £80,000 (I sadly have no personal allowance) but the basic rate 20% band.

AmanSood
Posts:216
Joined:Mon Jan 09, 2017 4:12 pm

Re: Self assessment form and excess pension contributions

Postby AmanSood » Mon Jan 30, 2017 11:11 am

did you have any pension contributions in the prior years? if not, you maybe carrying forward the unused allowance of £40k from the prior years in which case you may get lucky and have no additional tax to pay on the pension contributions.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155

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

Re: Self assessment form and excess pension contributions

Postby EF101 » Tue Jan 31, 2017 9:14 am

did you have any pension contributions in the prior years? if not, you maybe carrying forward the unused allowance of £40k from the prior years in which case you may get lucky and have no additional tax to pay on the pension contributions.
Sadly not :) And indeed, I have now found the charge for the excess contribution in the detailed tax calculation so my question is now redundant ! :)


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