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Where Taxpayers and Advisers Meet

Whats the penalties for going over my Pension Annual Allowance?

jtufty
Posts:45
Joined:Sun Jan 13, 2013 12:51 pm
Whats the penalties for going over my Pension Annual Allowance?

Postby jtufty » Sun Oct 27, 2024 11:28 am

Hi guys

I have DB, DC and SIPP pensions. This makes calculating exact figures regards Annual Allowance difficult/time-consuming.

Im looking to max-out my AA contributions. I dont think I have much carry-forward left.

Im not quite sure of what the consequences are if I go over my AA limit. Am I right in thinking that I wont get a 'punitive charge', its only that HMRC will remove any tax incentive that I would have had otherwise? If so, I can live with that. (Obviously its not ideal, and I will try and limit anything above my AA to as smaller amount as I can).

Each year I fill in a self assessment form. Do I just enter all my pension contributions, and HMRC just calculate what tax is owed (if I go over my AA)? In other words, I dont have to specify how much Ive gone over my AA. I presume not, but thought Id ask. :)

Thanks

D&C
Posts:178
Joined:Mon Nov 25, 2019 11:35 pm

Re: Whats the penalties for going over my Pension Annual Allowance?

Postby D&C » Sun Oct 27, 2024 12:11 pm

I think you have misunderstood the "Self" in Self Assessment.

You will need to tailor your return to get the appropriate section for an annual allowance charge and complete that with the necessary information.

As you already complete returns you can do that now for 2023/24 to see what is required and then just discard that part of the return.


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