6 June 2019

Request that the Pension Charge is paid by your fund by 31st July

The Pension Annual Allowance tax charge depends on the individual’s marginal rate of tax. The deadline to pay HMRC is 31st July 2019 for the 2018/19 tax year. Read on to learn how the rates are calculated. 

The rates

Where their income exceeds £150,000 it would be at 45%. Thus if the pension input for 2018/19 Was £40,000 and the limit is tapered to £10,000 the excess of £30,000 would incur a £13,500 tax bill on top of their normal tax liability. 

You can ask your pension provider to pay HMRC out of your pension fund if you’ve gone over your annual allowance and the additional tax is more than £2,000.

We can help you with your tax planning...

Our team of tax experts can help you maximise your tax efficiency. Contact us today on 0115 964 8888 or email enquiries@rwbca.co.uk.

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