Back in 2006, an attempt was made to simplify pensions legislation. It didn’t work. There truly is little that is simple about the UK pension system, and it is massively rules-based, particularly when taking the tax treatment of contributions and benefits into account.
HMRC, in its latest pensions newsletter, has provided details of another complex aspect of pensions tax relief. It seems that many high earners forget to give details about their pension contributions on their self-assessment tax returns.