Originally Posted by
Sandy Parts
All the related paperwork mentions that the statement from Veterans UK only covers your current service pension. Any other pension investments also have to be considered and the tax man expects you to know when you exceed the AA (even if you don’t get a letter). Something to think about when topping up a SIPP. HMRC get info from the banks and other financial organisations every year about your accounts so they can chase you up a few years later (hence ‘tax recalculation’ letters that are issued retrospectively if your declared figures don’t match the bank’s). Most of us will be PAYE rather then self-assessment so a letter to HMRC is needed to declare your SIPP contributions to reclaim the extra tax if eligible (40 or 41% rather than the default). This is then matched to the amount declared by the SIPP provider. All in all, a real pain and the govt promised to look into it but then only exempted certain professions from memory - not even sure if that was enacted in the end.
Thanks, Sandy for that post, I'm in a similar position and thought by now all the computer systems were talking.
Countdown, I do an annual tax return for MMA and personal pension additions that Al R helped me with. I'm quite happy to pay the tax, but not so happy to pay an accountant!! I know it's £150_ VAT, but I should be able to work it out, if the grey cells hadn't started going.
I overshot my allowance last year by £6,550 and there's oodles of unused allowance from the previous 3 years so there was nothing to declare on the tax return 19/20, but I'm more interested in this FY. As it stands, and it's sheer guesswork as the PIA seems a totally random figure- up and down for no reason, If I take a guess it will be the PIA for 19/20 plus a bit for inflation or what have you, then I will overshoot again by ??£17k. Again there are parts of previous years to hoover up, then by the helpful calculators linked here I will owe circa £1k. The galling part is the actual tax return...what goes where etc. Easy to add personal pension bits, but PIA plus personal pension = a witch doctor or accountant!
I've asked the AFPS again, but it was heavily hinted that people are paid to do these calcs. I have a feeling I will just have to pay.