Pension conts overage and self assessment
Pension conts overage and self assessment
Author
Discussion

David A

Original Poster:

3,725 posts

281 months

Sunday 26th November 2017
quotequote all
Should I enter an amount?

(years below means tax years)

Last year pension contribution was over £40K Lets call it £55K
Included £20+K of "my contributions" which pension provider grossed up.

Total of last 3 years means I can put inthe £55K without a problem

On the tax return in section 4 "Paying into registered pension scheme" I put in the £20+K

Do I need to put in the £15K over the 40K limit or not i.e. in this section "Are you liable to pension savings tax charges" as I'm not as I'm within the allowance including previous years.

confused



Eric Mc

125,701 posts

295 months

Sunday 26th November 2017
quotequote all
Are you talking about tax year 2016/17?

David A

Original Poster:

3,725 posts

281 months

Sunday 26th November 2017
quotequote all
Eric Mc said:
Are you talking about tax year 2016/17?
Yes

sidicks

25,218 posts

251 months

Sunday 26th November 2017
quotequote all
I'm watching the replies with interest, as I'm yet to do my tax return for the last tax year. My contributions for 2016/17 will be well above the £10k threshold, but will be more than covered by unused allowances from the previous 3 years.

Jockman

18,414 posts

190 months

Sunday 26th November 2017
quotequote all
sidicks said:
I'm watching the replies with interest, as I'm yet to do my tax return for the last tax year. My contributions for 2016/17 will be well above the £10k threshold, but will be more than covered by unused allowances from the previous 3 years.
Sid, you talking about the £4,000 MPAA?

sidicks

25,218 posts

251 months

Sunday 26th November 2017
quotequote all
Jockman said:
Sid, you talking about the £4,000 MPAA?
no, £10k annual contribution allowance. If I was using carry forward from previous years' allowances, I assumed this would need to be recorded on the tax return somewhere.

B0bman

49 posts

190 months

Sunday 26th November 2017
quotequote all
I’m an accountant so I hope I’ve been doing it right! I’ve not been making any further entries on those tax returns for clients who have exceeded their in-year Annual Allowance but are within their carried forward allowance.

sidicks

25,218 posts

251 months

Sunday 26th November 2017
quotequote all
B0bman said:
I’m an accountant so I hope I’ve been doing it right! I’ve not been making any further entries on those tax returns for clients who have exceeded their in-year Annual Allowance but are within their carried forward allowance.
Ok, thanks.

Jockman

18,414 posts

190 months

Sunday 26th November 2017
quotequote all
sidicks said:
Jockman said:
Sid, you talking about the £4,000 MPAA?
no, £10k annual contribution allowance. If I was using carry forward from previous years' allowances, I assumed this would need to be recorded on the tax return somewhere.
Understood. No it wouldn't. I didn't.

HL do a useful sheet - click on the factsheet hyperlink and go right to the end.

http://www.hl.co.uk/pensions/sipp/pension-carry-fo...

sidicks

25,218 posts

251 months

Sunday 26th November 2017
quotequote all
Jockman said:
Understood. No it wouldn't. I didn't.

HL do a useful sheet - click on the factsheet hyperlink and go right to the end.

http://www.hl.co.uk/pensions/sipp/pension-carry-fo...
Thanks - to clarify, is it 3 years of unused allowances that can be carried forward (to add to the current year) or is it just the current year plus the previous 2?

Jockman

18,414 posts

190 months

Sunday 26th November 2017
quotequote all
sidicks said:
Thanks - to clarify, is it 3 years of unused allowances that can be carried forward (to add to the current year) or is it just the current year plus the previous 2?
3

Remember you use current year first then you go back 3 years and use that next.

sidicks

25,218 posts

251 months

Sunday 26th November 2017
quotequote all
Jockman said:
3

Remember you use current year first then you go back 3 years and use that next.
Ok, right.

I have £27k unused from 2013/14
I have £11k unused from 2014/15
I have £6k unused from 2015/16

I have £27k excess contributions this year, which I can presumably offset against the 2013/14 allowance?

Next year I can make contributions of £27k which would use up my 2017/18 allowance plus my unused allowances from 2014/15 and 2015/16.

Thereafter, I just have £10k to play with. Is that correct?
beer
Sorry to the OP for hijacking his thread!

Jockman

18,414 posts

190 months

Sunday 26th November 2017
quotequote all
I did it in one hit Sid so I know the first half of your post is correct. As you will do it in 2 stages I would assume that you are still correct but I would seek confirmation from purplemoonlight to be safe. He is a nocturnal creature so you may get an answer in the middle of the night.

Apologies OP. I think your question may have been answered?

sidicks

25,218 posts

251 months

Sunday 26th November 2017
quotequote all
Jockman said:
I did it in one hit Sid so I know the first half of your post is correct. As you will do it in 2 stages I would assume that you are still correct but I would seek confirmation from purplemoonlight to be safe. He is a nocturnal creature so you may get an answer in the middle of the night.

Apologies OP. I think your question may have been answered?
Thanks.
beer

David A

Original Poster:

3,725 posts

281 months

Monday 27th November 2017
quotequote all
B0bman said:
I’m an accountant so I hope I’ve been doing it right! I’ve not been making any further entries on those tax returns for clients who have exceeded their in-year Annual Allowance but are within their carried forward allowance.
I think this is the answer I want i.e. I don’t need to enter anything as I’m within current and prevent years allowances.



Jockman said:
I did it in one hit Sid so I know the first half of your post is correct. As you will do it in 2 stages I would assume that you are still correct but I would seek confirmation from purplemoonlight to be safe. He is a nocturnal creature so you may get an answer in the middle of the night.

Apologies OP. I think your question may have been answered?
Bloody thread hijackers, grumble grumble.

GT03ROB

14,025 posts

251 months

Monday 27th November 2017
quotequote all
I'm sure they make this subject so complex to put you off the damn things!

Jockman

18,414 posts

190 months

Monday 27th November 2017
quotequote all
GT03ROB said:
I'm sure they make this subject so complex to put you off the damn things!
I'm sure it's even more complicated for those living abroad matey wink

GT03ROB

14,025 posts

251 months

Monday 27th November 2017
quotequote all
Jockman said:
GT03ROB said:
I'm sure they make this subject so complex to put you off the damn things!
I'm sure it's even more complicated for those living abroad matey wink
as a non-resident it's actually quite clean, since I left Kuwait I'm not sure if I'm going to be resident or not, this is where it gets tricky & need accountants to sort out as our packages get grossed up to cover tax bills, yet we then have issues on annual limits. headache

Jockman

18,414 posts

190 months

Monday 27th November 2017
quotequote all
GT03ROB said:
as a non-resident it's actually quite clean, since I left Kuwait I'm not sure if I'm going to be resident or not, this is where it gets tricky & need accountants to sort out as our packages get grossed up to cover tax bills, yet we then have issues on annual limits. headache
Don't all the big oil Cos use KPMG etc to negotiate a tax figure with HMRC or has that fallen by the wayside?

Just seen where you've moved to !!

GT03ROB

14,025 posts

251 months

Monday 27th November 2017
quotequote all
Jockman said:
Don't all the big oil Cos use KPMG etc to negotiate a tax figure with HMRC or has that fallen by the wayside?

Just seen where you've moved to !!
We've got PWC, who sort it out. I never get to see my true earning except by way of the tax return I approve. I sign up to an annual amount in my bank, whatever tax & pension shenanigans there are I don't care about, because the company pick up that bill. They take the risk on my residency & consequent tax liabilities.

Yeah & the first snow of the winter is falling!!