HMRC reveals 25% fall in people breaching annual allowance limit

‘Thresholds for tapered AA rose to over £200,000’

Ayesha Venkataraman
clock • 2 min read

The total value of pension contributions that exceeded an individual’s annual allowance (AA) fell almost 25% from £1bn in 2019/20 to £764m in 2020/21, latest data from HM Revenue & Customs (HMRC) revealed.

HMRC has today (28 September) published figures for the amounts raised through AA charges - the standard rate of which is £40,000 per year since April 2014 - though some individuals will have a lower annual limit, particularly those on higher incomes. The government data provided two different ways of reporting the actual AA charges namely, either through self-assessment or through scheme accounting for tax (AFT) returns. It said the revenue from ‘scheme pays' charges and the tax due on contributions/accrual above the AA both fell in 2020/21, with the tax charges covered by ‘scheme pa...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
 Be the first to hear about our events and awards programmes.



Already a Professional Adviser member?


More on Pensions

According to research from My Pension Expert, almost half of those surveyed (45%) believed the current financial crisis had negatively impacted their retirement strategy

Third of UK adults doubt government will restore pension security 

Action needed to protect retirees and pension savers, experts say

Julia Bahr
clock 25 November 2022 • 2 min read
Mark Devlin explains how to help clients avoid the MPAA

Spanner in the works: How to help clients avoid the MPAA

MPAA can reduce DC contributions to £4,000 a year

Mark Devlin
clock 24 November 2022 • 3 min read
PDP publishes updated pension dashboard standards

PDP publishes updated pension dashboard standards

Will consult on draft design standards this winter

Holly Roach
clock 21 November 2022 • 1 min read