[DAYS_LEFT] days left of your Medeconomics free trial

Subscribe now

Your free trial has expired

Subscribe now to access Medeconomics

Pension tax relief

Q: Can you give me your opinion on the non-disclosure in my tax return of a self-invested pension plan (SIPP) payment to HM Revenue & Customs (HMRC)? Every March I make substantial payments into my SIPP and in past years, these have been declared in my tax return. This year, with the new rules, which involve accruals and multipliers, I 'guesstimated' that a £5,000 SIPP contribution may still attract higher-rate tax relief, so I made that investment. I am aware that, in the fullness of time, HMRC may not allow any or all of it and I may have to repay some tax relief. My accountant omitted the payment from my tax return, insisting that if he did include it, HMRC would automatically give me higher-rate tax relief on it and I may not be entitled to it. I feel vulnerable not disclosing the £5,000 contribution. What do you think?

A: If you have made pension contributions these should be disclosed in your tax return on page four. If you do actually know some of these contributions exceed the special annual allowance - which means you will not be entitled to higher-rate tax relief - you need to complete the additional information on page four (Ai4) in box 9 and state the amount of pension over the special annual allowance. A special annual allowance charge will be calculated at 20 per cent for the excess amount.

Do you have a financial question? Ask our experts

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Would you like to post a comment?

Please Sign in or register.

Database of GP Fees

Latest Jobs