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Annual Allowance Letters

Annual Allowance (AA) letters relevant to the 2021 – 2022 tax year are currently being issued by MOD.

Letters are sent only to those who have breached the AA limit for the tax year in question.  If you receive a letter do not ignore it

You first need to establish if you have a tax charge to pay and the HMRC online AA calculator can help you to do this.  If you do not have a tax charge then you do not need to take any further action.  However, if you do have a tax charge then you will need to complete a self-assessment tax return.

The MoD issues a helpful guide for those who receive AA letters and this can be found here.  It also provides help on completion of the self-assessment tax return.

For those who need to complete a tax return please remember that the deadline for online submission is 31st January 2023.

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