Salary sacrifice pension overpayment

[lucyclarityumbrella]

Depends on the situation tbh, if you have put more in already, you have the choice to see if the umbrella company will roll back the payments (assuming they have returned pension funds), or simply ask the pension company to return monies and ask the umbrella to repay and tax it - hey presto should be easy to fix as lonog as the pension company are decent about returning it

[davetza]

This is the type of thing I always use ChatGPT for though p[lease always double check it. This is what it told me

Options:

1. Contact umbrella payroll immediately. Request confirmation of the total gross pension contributions made via salary sacrifice this tax year. Verify the excess against the £60,000 annual allowance (or your tapered allowance if applicable).
2. If it exceeds your allowance:
   • You cannot “refund” salary sacrifice contributions; the sacrificed salary is no longer yours.
   • The excess contribution remains in your SIPP but triggers an Annual Allowance Charge.
   • You can offset this by carrying forward unused allowances from the previous three tax years. Check prior contribution levels to see if this removes the excess.
3. If carry-forward doesn’t cover it:
   • You pay income tax on the excess at your marginal rate.
   • You can either pay the charge yourself via self-assessment, or if the excess is over £2,000, you may elect “Scheme Pays”, where your SIPP provider pays HMRC and reduces your pot accordingly.
4. If you have not exceeded your total allowance:
   • Leave it as is. The only issue is reduced take-home pay; no correction required.
5. Do not attempt to reverse a salary sacrifice retrospectively—HMRC prohibits it. The umbrella can only adjust future contributions.

To resolve: confirm annual allowance usage, apply carry-forward if available, otherwise prepare for Annual Allowance Charge in your 2025/26 self-assessment.

[Nava39]

Do you mean that you have already oversubscribed for the full year after only 7 months, or that you will have done if you keep paying at the current rate?
If it is the latter, speak to the umbrella about not paying in to the pension.
If it is the former, then you'd be best to speak to your pension advisor and maybe a tax advisor/accountant for the best way to resolve the situation.
There isn't a "one size fits all" solution, but the professionals who you pay for advice should be able to help.

Thanks, Yes already over. Reading the replies I think easier to declare and pay the tax on the over and above on my SA.

[Protagoras]

It may be worth checking that you've no available carry-forward allowance, but you've probably done this already!

I suppose worst case scenario is that you record the over-payment on your tax return and pay tax on it. There's information about this online, for example https://techzone.aberdeenadviser.com...wance#anchor_8

[WTFH]

Hello, I have unintentionally oversubscribed this tax year's SIPP salary sacrifice pension contribution through my umbrella by around £4,000.

Anyone with experience of this can advise on what my options are ?

Thanks

Do you mean that you have already oversubscribed for the full year after only 7 months, or that you will have done if you keep paying at the current rate?
If it is the latter, speak to the umbrella about not paying in to the pension.
If it is the former, then you'd be best to speak to your pension advisor and maybe a tax advisor/accountant for the best way to resolve the situation.
There isn't a "one size fits all" solution, but the professionals who you pay for advice should be able to help.

[sadkingbilly]

When I posted this question here earlier today, I imagined someone with previous experience would share their knowledge

Never thought I get a page full of wasted and irrelevant replies within a couple of hours

oh! what a shame! - well, maybe someone will come along and help you, since you're so nice and respectful.

[Nava39]

When I posted this question here earlier today, I imagined someone with previous experience would share their knowledge

Never thought I get a page full of wasted and irrelevant replies within a couple of hours

[sadkingbilly]

Pointless reply!! As clearly outlined, paid through UMBRELLA , Thus no accountant !! dahhh

oh, and if you're going to get stroppy, good luck.

[sadkingbilly]

Pointless reply!! As clearly outlined, paid through UMBRELLA , Thus no accountant !! dahhh

ok, ask AN accountant? or ask umbrella (good luck with that if not Lucy)

[Nava39]

ask your accountant?

Pointless reply!! As clearly outlined, paid through UMBRELLA , Thus no accountant !! dahhh

[sadkingbilly]

ask your accountant?

[Nava39]

you've got 5 months left in this tax year to adjust it.
so what's the issue?

thanks, what is the best way of adjusting it?
Also in the past I had seen post saying overpayment can also be beneficial, as I would pay tax on the overpayment, but save on the 2 NIs . Is that an option ?

[sadkingbilly]

you've got 5 months left in this tax year to adjust it.
so what's the issue?

[Nava39]

Hello, I have unintentionally oversubscribed this tax year's SIPP salary sacrifice pension contribution through my umbrella by around £4,000.

Anyone with experience of this can advise on what my options are ?

Thanks