According to statistics recently released by HMRC, the number of pension savers who have contributed more than the annual allowance on pensions has more than tripled in the last year. The figures show that in the 2015/16 tax year, the total number of individuals who declared an annual allowance breach was 5,430 with the value of contributions exceeding the limit, coming in at £179m. The latest figures for 2016/17 showed that 16,590 people breached the limit with the value now jumping to £561m.
One of the reasons for the jump is that in 2016/17 the tapered annual allowance for high earners came into effect. This will create significant extra revenue for HMRC and is likely to continue to increase year by year, in particular with the reduction in the money purchase annual allowance to £4,000 which took effect April 2017.
If you need advice on the annual or lifetime pension allowance you can speak to one of our Independent and Chartered advisers who can help.