Pensions Savings Statements

Snowdonia National Park, Wales

Paying into a pension arrangement, which is approved by Her Majesty’s Revenue and Customs (HMRC), allows you to benefit from certain tax efficiencies as you save for your retirement.

However, HMRC sets a limit on how much you can save in a registered pension arrangement each tax year without incurring a tax charge. This is called the Annual Allowance.

Most people will not have exceeded the Annual Allowance in 2019/20. But if you have, you will need notify HMRC and pay a tax charge before 31 January 2021, so it is important to check.

IMPORTANT NOTE: As part of the 2020 spring budget, the Chancellor announced changes to the limits used to work out your Annual Allowance for the tax year 2020/21. Click here for details of these changes, which do not affect your Annual Allowance position for tax year 2019/20.

This section of the website is designed to help you understand the Annual Allowance, how to work out your Annual Allowance status and what to do if you have exceeded the Annual Allowance for 2019/20.

Key facts for 2019/20

  • For most people the Annual Allowance is currently £40,000
  • For high earners, the Annual Allowance reduces on a tapered basis to a minimum of £10,000
  • If you have already taken benefits from a Defined Contribution or Money Purchase arrangement and have been issued with a certificate confirming that you are now affected by the Money Purchase Annual Allowance, please tell us by emailing so that we can issue you with a Money Purchase Pension Savings Statement each year.
  • Any contributions over the Annual Allowance attract a tax charge.

Key dates

ActionDeadline date
Review your pension savings statementAs soon as possible
Call Wealth at Work if you need help calculating your Annual AllowanceAs soon as possible
Register for a Self Assessment tax return, if you did not send one last tax year and have an Annual Allowance tax chargeBy 5 October 2020
Request a Scheme Pays quoteBy 9 October 2020
If requested, you will receive a Scheme Pays quoteBy 16 November 2020
Return a Scheme Pays nomination formBy 11 December 2020
Notify HMRC of the Annual Allowance tax charge (if one applies to you)By 31 January 2021

Throughout this section of the website we occasionally have had to use technical terms when explaining the calculation of your Annual Allowance. These terms are underlined with a dotted line  and if you tap or hover your mouse pointer over the term an explanation will appear on the screen.

Getting more help?

WEALTH at work

We have appointed WEALTH at work, leading independent financial guidance specialists, to operate a free dedicated telephone helpline to answer any questions you may have about your pension savings statement.

This call will provide you with guidance and help you decide if you may have incurred an Annual Allowance tax charge, however this cannot be constituted as advice. WEALTH at work are able to provide you with personal financial advice but you will be charged.

Call 0800 0931462 to speak to a member of the WEALTH at work guidance team.

HMRC website

Alternatively, you can find more information on the HMRC website here.

Independent financial advice

If you want independent financial advice at this stage, you can use the Money Advice Service part of the Money and Pensions Service at to find an independent financial adviser in your area.

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