Hi,
Tax is payable on pension payments that go above the annual allowance, provided your client has not flexibly accessed their pension pot or has a high income. Up to 2022 to 2023 this threshold was £40000.00. For 2023 to 2024, it has increased to £60000.00.
Tax on your private pension contributions
The payment into the pension scheme counts towards the threshold and should not be included as part of the turnover. Instead, if your client has exceeded the allowance threshold, the difference is reported on SA101 on page Ai4, in the section "Pension Savings Tax Charges", so that it can be included in the tax liability calculation.
Thank you.