MPAA / voluntary scheme pays
Can anybody help with these two questions?
- Are there any providers that will accept a transfer in and facilitate voluntary scheme pays?
- How is the MPAA charge calculated?
A bit of background:
In 2018, Mrs took one of her pensions as a full lump sum in a single transaction. The value was > £10,000, so does not qualify for 'small pots'. As a result, she triggered the money purchase annual allowance (£4k).
She then made an employer pension contribution for £16k in 19/20 (whoops) and a further £8k in 2020/21, both in excess of her reduced money purchase annual allowance (£4k). As a result, she needs to pay the annual allowance tax charge by July 2021.
Her earnings for 19/20 were £50,000 (£8,000 salary and £42,000 dividend). Her earnings for 20/21 are £8,000 salary.
If she transferred to a new provider, could the new provider facilitate voluntary scheme pays, if willing? (her current pension provider will not facilitate scheme pays unless it is mandatory, which it is not).