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Reclaim back tax on Pension if HRT payer?
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techno12
Posts: 734 Forumite
Hi, I'm new so go easy on me ;-)
Today at work we had a presentation on our new pension scheme at work, and the guy said that just about the only advantage of being a higher rate tax payer was that you got tax relief on your pension contributions at 40% instead of 22% (going down to 20% soon).
I've been one for a few years now, and looking at my latest pension statement it says "Basic rate tax relief" , and the list of monthly contributions are along the lines of
"Amount paid £117, Tax relief £33 Total £150"
which looks like 22% to me, not 40%.
Is it possible for me to claim back the missing 18% (if so, how?) - and can I reclaim 'going back' 2 or 3 years? I'm slightly miffed as surely the govt knows I'm a HRT payer so would automatically give me the 40%!
Many thanks in advance!
Today at work we had a presentation on our new pension scheme at work, and the guy said that just about the only advantage of being a higher rate tax payer was that you got tax relief on your pension contributions at 40% instead of 22% (going down to 20% soon).
I've been one for a few years now, and looking at my latest pension statement it says "Basic rate tax relief" , and the list of monthly contributions are along the lines of
"Amount paid £117, Tax relief £33 Total £150"
which looks like 22% to me, not 40%.
Is it possible for me to claim back the missing 18% (if so, how?) - and can I reclaim 'going back' 2 or 3 years? I'm slightly miffed as surely the govt knows I'm a HRT payer so would automatically give me the 40%!
Many thanks in advance!
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Comments
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You need to reclaim it in your tax return.I have worked for 5 years as a Pension Administrator and then a further year in a non-administrator pension role. I am not (and never have been) an adviser. Do not take anything I say as advice, it is information given on the best of my knowledge.0
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If you are a higher rate taxpayer and the contributions are paid via your bank, you claim the tax back via your tax return.I'm slightly miffed as surely the govt knows I'm a HRT payer so would automatically give me the 40%!
Its called self assessment for the reason that the HMRC put the responsibility on your shoulders.
You shouldnt need to complete the full self assessment forms for this but contact the HMRC and make them aware of the gross contributions you have paid and the years you were a higher rate taxpayer.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
techno12, write a letter to your tax office telling them the history of your pension contributions each year. I think they will go back six years, but don't count on that. You don't need to use a full tax return for this.
You should also tell them the gross interest you received from any savings accounts each year, since you may have more higher rate tax to pay on it. That would probably be offset by the pension contributions, so the net effect on you now would be nil but it would mean that you have correctly declared income you were supposed to declare.
Savings interest counts for tax purposes when you actually receive it so annually paid interest is all in the tax year of the day when it's paid.0 -
is the 6 year rule still valid for claiming back higher rate relief as i can't find much on the net about it, even the hmrc website is fairly bare. I'm thinking that this facility may have disappeared when carryback was abolished?0
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