Claiming higher-rate relief - don't need to do a tax return?!

mr_fishbulb

My girlfriend's IFA has said she needs to complete a tax return to claim higher rate pension relief on her stakeholder pension.

I am questioning this as I have been able to claim this by writing to HMRC giving details of my contributions over the last year and they have either adjusted my tax code for the next year, or issues a tax refund.

The only difference between our pensions is mine is set up through my work (the contribute too) and hers is done on her own. My work have a template letter we complete with the pension scheme number and the company PAYE ref.

So is my girlfriend able to do the same with a letter to HMRC, or does she need to do a tax return as her pension is not through her work?

Thanks in advance

zygurat789

Send in the letter they can, at worst, send her a tax return, which is afterall a letter to HMRC telling them your income, references and claims.

dunstonh

Most higher rate taxpayers need to fill in a tax return to declare things extra tax on savings etc. So, the generic wording is that you declare it via your tax return.

However, the HMRC will accept notification of contributions without a tax return and adjust your tax code. Just in the same way they will amend tax codes for other things.

mr_fishbulb

Thanks both

dunstonh - Can you just include details about the the extra tax on savings in the letter? Seems a bit OTT that someone who is just in the higher rate band and has little savings (e.g. they just bought a house, or put all their savings in an ISA) has to fill in a tax return for the sake of a few £10s

dunstonh

To be honest, the tax return in that case shouldnt take more than 5 minutes to complete.

Some people are scared of self assessment. However, its just a pre-printed form with sections you fill in if applicable. In your case, you would only need to fill in a couple of boxes and sign it.

I dont know if the HMRC would accept notification of the interest on savings by other means. I suppose they should in theory but writing a letter could well take longer than filling the boxes in on the self assessment form.

jamesd

HMRC does accept notification of untaxed interest by letter. HMRC is also trying to avoid signing up those with relatively simple affairs for SA, so my guess is that a letter would be preferred by HMRC so long as things are simple. If they have a different view about an individual they could just send a tax return to be completed after they get the letter.

JCB2020

I simply rang them when I had a query about tax on savings at the higher rate.
They simply took the details and issued a revised tax code to my employer.
Quick and simple - they never even mentioned completion of a return!

hugheskevi

I claimed higher-rate tax relief for 2008/09 for a personal pension not related to work.

If you claim after the end of the tax year the refund is due for, you will need a P60 (or similar) for the claim.

Write to HMRC, who will send you out a very simple form (not self-assessment) to complete which will include a section where they ask you to declare any income not subject to PAYE. Send that back with relevant evidence, and they send you out a cheque. It took about 3 months for it to be sorted though, as HMRC were having trouble with their new computer system, so had a backlog of post and weren't opening mail unitl 6 weeks after it arrived.

It is much easier to ask HMRC to adjust your PAYE code to take account of actual or anticipated contributions for the current year so that you don't not need a tax refund once the tax year has finished. No evidence is needed for that, just a simple telephone call to HMRC to tell them how much the pension contribution will be.