Pension contributions in excess of earnings

[williaa68]

As I have started to do our tax returns for last year I have realised that my wife has made pension contributions in excess of her qualifying earnings - her employment income is a little volatile so I guessed and made a lump sum contribution at the end of the tax year but guessed too high. She has other income that would cover the contributions but it is investment rather than employment income and so as I understand it doesn't count. Will this just sort itself out in the course of doing her self-assessment return or do I also need to tell her SIPP trustee (Hargreaves Lansdown)? Advice appreciated!

[Ozzie Osmond]

Don't forget she can "carry forward" earnings from 3 previous years for this purpose. So you might not have a problem at all. As you suggested, self assessment return may resolve.

http://www.pensionsadvisoryservice.org.uk/about-pe...

[PurpleMoonlight]

Ozzie Osmond said:

Don't forget she can "carry forward" earnings from 3 previous years for this purpose. So you might not have a problem at all. As you suggested, self assessment return may resolve.

http://www.pensionsadvisoryservice.org.uk/about-pe...

A common mistake. All the tax relief is granted in the tax year of payment so sufficient taxable income is still required (assuming personal contribution).

OP. Tell Hargreaves Landsdown and take their advice.

[Ozzie Osmond]

Ooops, thanks for the correction.

I should have got that right because I remember the carry forward opportunity was introduced to help sportsmen and actors who find they suddenly "have a good year" and are able to make big pension contributions out of THAT year's earnings into a pension arrangement which has been running for some time. OPs situation is the exact opposite of this.... My apologies.