Mick Smith

Hi If 2324 self assessment was submitted in summer 2024 and taxes owed were paid, However something may have been missed which may mean an additional £600 tax should have been paid . Can you do this online , or not ? Is it easy to do and settle immediately ? Thanks Mick

Hi , the threshold income annual allowance is £200k, and the Adjusted income annual allowance is £260k. For every £2 over the adjusted income annual allowance your pensions annual allowance decreases by £1, and can fall to £10k. For what you have paid into the pension above that £10k you will then have to pay 45% tax on (if 45% tax payer). My query is- to get to the adjusted income annual allowance Gross salary + any bonuses + Any dividends received + savings interest + Employers pension contributions (and if any salary sacrifice and deducted prior to tax by the employer) + any rental income if applicable = Adjusted income amount If you sold shares (and pay capital gains tax) , do the capital gains on the sale of the shares ,is this a separate matter or are they included in the formula ? thank you for any help on this Mick

sorry if this is wrong section , i could not find one for pensions tax. Question on Adjusted Income Allowance. I am aware if your adjusted annual income is above £260k then for every £2 above you lose £1 of your annual allowance. However there is conflicting information how to calculate it, and how report it , and what exactly pay. is it as follows Gross Pay + Bonuses +Interest on savings + dividends + Employers pension contributions (NOT employees, unless salary sacrifice scheme) = Adjusted annual income allowance. so, if this amount came to £300k, this is £40k above what is allowed and as a result your annual pension allowance would reduce from £60k to £40k. (reduced by £20k). If had paid in £50k for that year it means there will be a tax charge on the £10k overpayment , so tax would be £10k x 45% = £4.5k to pay to hmrc . IS THAT RIGHT ? And this would be done when submit self assessemnt , you just fill in your figures as normal and hmrc would calculate the tax , it doesnt have to go into any other special section on the tax return ? Thank you for taking time to read 


Name removed admin .