The dreaded Pension Annual Allowance charge. The charge that can be requested by HM Revenue and Customs (HMRC) from anyone who is contributing too much to their workplace or private pension.
Putting savings away so you can look after yourself in the later stages of your life…. How outrageous!
Hard to believe that you can be penalised for prudent saving. But this is the way the rules are currently designed and they have become more complex over the last few years. This is catching lots of people out especially Doctors and Dentists.
You can find out how the Pension Annual Allowance works and those most impacted by the Tapered Annual Allowance in my recent article here.
If you do now face a Pension Annual Allowance charge, how do you actually pay it? I mean we could be talking some serious sums of money here. I’ve seen reports of 5 figure tax bills!
You basically have two options.… Continue Reading