Consequences of too much salary sacrifice into a pension??

[Olly]

My umbrella will only agree to pay a % of day rate via salary sacrifice into my private pension.
I want to max out £60k per year.
Because I don't know exactly how many days I will work it's impossible to give them an accurate % that when added up equals £60k
What would the consequences be of them paying in more than £60K
I asked the umbrella - Paystream - they don't know.
I've posted here rather than in the umbrella sub-section of the forum as I think it's more of an accounting/tax type qu.
Thanks

[northernladuk]

You could try asking ChatGPT or doing it old school via google.

You can pay more in using previous years unused allowance as long as you were in the scheme in the years before the current one. Again, easily found on google.

[Fred Bloggs]

You could try asking ChatGPT or doing it old school via google.

You can pay more in using previous years unused allowance as long as you were in the scheme in the years before the current one. Again, easily found on google.

Not quite. Should read "as long as you were in any scheme". Being in a pension scheme but not actually contributing that year or years is fine too.

[Olly]

You can pay more in using previou years unused allowance as long as you were in the scheme in the years before the current one. Again, easily found on google.

That's an answer to a different question I wasn't asking. The question was what happens if I overpay into a SIPP via salary sacrifice.

[Fred Bloggs]

That's an answer to a different question I wasn't asking. The question was what happens if I overpay into a SIPP via salary sacrifice.

Google really is your friend here. This from AJ Bell.

What happens if I contribute more than the annual allowance into my SIPP?

The annual allowance for most people is £60,000. If your total pension contributions – including any your employer makes – exceed your annual allowance, you’ll be subject to a tax charge. This is known as the annual allowance charge (AAC).

[Olly]

Yup but what about the employees, employers and apprentice tax not paid on the excess contribution?

[eek]

So work out the number of days you expect to work and divide £57,000 say by that figure.

That will give you a bit of leeway. Then pay the remaining £300 or so in late March / early April once you know what the underspend is.

[eek]

Yup but what about the employees, employers and apprentice tax not paid on the excess contribution?

will always be lower than the tax if you go over - which is likely to be 40% if not 45%

[Fred Bloggs]

will always be lower than the tax if you go over - which is likely to be 40% if not 45%

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.

[Olly]

So work out the number of days you expect to work and divide £57,000 say by that figure.

That will give you a bit of leeway. Then pay the remaining £300 or so in late March / early April once you know what the underspend is.

The contribution needs to come out as salary sacrifice which means, by HMRC rules, you can only change the contribution rate if there is a "life event" so whilst I can get the income tax back if I "top up" at the end of the year I loose the employers, employees NI and apprenticeship levy so I'm trying to get it as close as poss first time and trying to work out the implications if I go over.