Consequences of too much salary sacrifice into a pension??

[Protagoras]

I've discovered I've likely overpaid (hopefully not too much) this year and last (missed that I had to include any increases on a defined benefit pension and last years tax relief on a lump sum contribution outside of salary sacrifice took me over).

Re: "I had to include any increases on a defined benefit pension"

Just to note that there's a deferred pension exemption, but presumably you're not eligible to take advantage of this.

https://techzone.abrdn.com/public/pe...wance#anchor_3

[Olly]

I can't be bothered looking it up, I already did too much of that. I believe, but could be wrong, that the excess contribution tax is 55%. Anyone who wants to know for sure, I recommend Google.

I believe you might be wrong and that the tax on excess contribution is whatever income tax you would have paid if you hadn't done it.

[willendure]

My umbrella will only agree to pay a % of day rate via salary sacrifice into my private pension.
I asked the umbrella - Paystream - they don't know.

I suppose you could also consider changing to a more effective and helpful umbrella? You pay these people after all...

[Fred Bloggs]

I believe you might be wrong and that the tax on excess contribution is whatever income tax you would have paid if you hadn't done it.

That was tax for exceeding LTA. LTA has gone away so logically the 55% tax has. I wouldn't be surprised at all to see it return in the foreseeable future.

[Olly]

I suppose you could also consider changing to a more effective and helpful umbrella? You pay these people after all...

No real choice there - the agency will only work with certain umbrellas and the others on their list had far far more archaic restrictions.

[willendure]

No real choice there - the agency will only work with certain umbrellas and the others on their list had far far more archaic restrictions.

I hate those people - its your money after all!

I briefly looked at going inside IR35 and one umbrella agency told me that you could only put pension money into their own pension scheme, no SIPP or anything like that. You could once the contract ended move the money out to your own scheme.