Tax deadline on pension plans

PEOPLE with personal pensions have received a new warning about ensuring that they 're-certify' their eligibility to continue paying into their plans, writes Maria Scott.

Employed people paying extra contributions into their plans - over and above any refunds from National Insurance contributions - must confirm with their pension provider by the fifth anniversary of starting their policy that they are still eligible for tax relief.

Pension companies are sending re-certification forms out now.

People who do not respond risk having their plans closed. The pension company will return contributions and repay basic-rate tax relief to the Inland Revenue. BDO Binder Hamlyn, the accountancy firm, warns that higher-rate taxpayers could face an extra tax bill.