The tax authority has launched an online calculator allowing people to check whether they have breached pension annual allowance limits.

HM Revenue & Customs released the online tool after the introduction of a tapered annual allowance this year, which has complicated the task of working out whether savers have breached their savings limits.

The taper sees the annual allowance gradually reducing from £40,000 to £10,000 for individuals who have total income of £150,000 or more, including earnings and other taxable income, up to a cap of £210,000. Savings in excess of the annual allowance will see the saver levied with a tax charge at their marginal tax rate.

The new online calculator will help savers to check whether they need to pay tax on their pension savings, or if they have any unused pension allowances from previous years that they could carry forward.

The calculator can be found at

Source link