HMRC reveals 30,000 people breached pension limits despite bigger tax-free allowance

HMRC data shows that 30,440 people reported breaching the pension annual allowance during the 2024/25 tax year, up from 24,950 the year before—an increase of 22%. The total amount contributed above the limit rose from £505 million to £672 million, up 33% in 12 months. The figures are striking given the standard annual allowance was increased from £40,000 to £60,000 in April 2023. Wealth management firm Evelyn Partners says one key driver is the tapered annual allowance for higher earners: with threshold income above £200,000 and adjusted income above £260,000, the allowance can shrink rapidly, and employer contributions count toward the calculation.