Exceeded SIPP allowance years ago

Hello,

Looking back at my SIPP contributions I think I inadvertently paid in more than I earned one year - 4 or 5 years ago. I haven't been approached by the SIPP provider or HMRC but In reviewing my contributions it looks like I was over. I'd contributed a chunk early in the tax year based on expected earnings which didn't materialize.

Is there a statute of limitations on this and should I just forget it?  Or should I contact someone to get it sorted? I'm a non tax payer and have an NT tax code in the UK now, and I know I have lower limits now - but the was while I was resident in the UK.

Cheers

A

@Art

You may well find that you have annual allowances brought forward from years before you exceeded your 'annual allowance'

It's a bit misleading because availing yourself of allowances brought forward allows you to exceed annual limits.

See here (there's a useful calculator that may help you):

https://www.gov.uk/guidance/check-if-you-have-unused-annual-allowances-on-your-pension-savings

I'd be surprised if you've exceeded your allowance and HMRC haven't caught up with you. Did you complete self-assessment tax returns? This usually is necessary for high rate taxpayers to obtain full tax relief on their pension contributions (the SIPP provider only claims basic rate relief).

Hey there,

It was definitely over the amount I should have contributed. As I've heard nothing I think I will keep quiet and pay them back any tax relief should anyone come knocking!

Cheers

A

Yes , but you may find that in the years before you went over, you were actually under (you must have been unless you paid the exact amount allowed) and this will have allowed you to carry forward the shortfall - for up to 3 years - can be very valuable - it certainly was in the years when the annual allowance was £255,000 before it reduced to £50,000 (April 2011) and to £40,000 (April 2014).

Unused allowances are clearly not worth as much as they used to be, but this carry forward could help you (or may have helped you in the past).

Try reading this:

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm055100