Tax return: Confused about pension

crayola

Trying to knock the evil thing on the head and am just so confused about the pensions section - can anyone help?

So I was making contributions to a personal pension during the tax year. I have indicated as such on my return.

Next, it asks you to submit the amount, but I have no idea which box the figure should go in. The possible options are:

"schemes where basic rate tax relief will be claimed by your pension provider (called 'relief at source')"

or

Payments to a retirement annuity contract where basic rate tax relief will not be claimed by your provider

or

Payments to your employer's scheme which were not deducted from your pay before tax:

and I have no idea which type my pension falls into. All I know is that it's a 'stakeholder pension' with HSBC and that the payments were initially taken directly out of my pay. The company did not contribute anything towards my pension, however.

The company where I started the pension then went bust, but I continued making direct contributions.

How can I find out what type it was? I can't ask anyone at the company which no longer exists. Help?

Elaine_Wilson

A stakeholder pension will not be a retirement annuity contract. You will be able to confirm this by looking at the pension documentation.

To choose between the other two options you need to ascertain whether the contribution was deducted from your pay before tax was calculated or simply deducted from the net pay.

Look at your payslip. If it shows a gross pay figure, then a lower taxable pay (with the difference being the pension contribution) then you have been given tax relief already and the first option you gave applies.

Otherwise the third one is applicable. If you are unsure you could post the gross and taxable pay details from a slip together with the code number and actual tax deducted for someone here to check.

crayola

Elaine_Wilson wrote: »

To choose between the other two options you need to ascertain whether the contribution was deducted from your pay before tax was calculated or simply deducted from the net pay.

Look at your payslip. If it shows a gross pay figure, then a lower taxable pay (with the difference being the pension contribution) then you have been given tax relief already and the first option you gave applies.

Otherwise the third one is applicable. If you are unsure you could post the gross and taxable pay details from a slip together with the code number and actual tax deducted for someone here to check.

Thanks Elaine. I'm really glad you replied, as the chap I just spoke to at HMRC actually told me that my pension contributions don't need to go on my return at all (which would mean paying them a lot more money)

This didn't ring true with me at the time, because I have my original letter from HSBC which clearly states "you are entitled to receive tax relief on all your pension contributions".

The problem I now have is that I don't know which of those two categories it will fit into, because the company I was working for went bust half way through the tax year. So although I was paying through my salary for half of it, I started making individual contributions after that.

Is there one category that will cover both, and if so, which one?

IF it helps figure it out at all, the company I was working for did the 'bare minimum' as far as pensions were concerned, didn't contribute anything and essentially just set up a fund for me because I asked them to.

I'm getting really desperate now and need this resolved. No idea what to do if HMRC are giving me wrong information

noh

It will almost certainly be
"schemes where basic rate tax relief will be claimed by your pension provider (called 'relief at source')"

The tax return asks for the gross amount paid so remember to add 25% to the actual amount you have paid.
For every £80 you pay to the pension provider they reclaim £20 tax from HMRC

crayola

noh wrote: »

It will almost certainly be
"schemes where basic rate tax relief will be claimed by your pension provider (called 'relief at source')"

The tax return asks for the gross amount paid so remember to add 25% to the actual amount you have paid.
For every £80 you pay to the pension provider they reclaim £20 tax from HMRC

Really? That's the only one I was sure it wouldn't be - the guy at HMRC told me that's only for if you're a 40% taxpayer, which I'm not.

I guess I had better call them *again* and ask someone else, but it's difficult at work as I don't have my own desk phone.

I am almost in tears now this is so frustrating!

noh

Yes really.
If the HMRC operator said that then he is incorrect.

You make a contribution to the scheme from your net salary.
The pension provider reclaims the 20% tax at source from HMRC.

If you were a 40% tax payer the same would happen but the other 20% would be paid to you in the form of a rebate or adjustment to your tax code.

crayola

OK, thanks noh. Will be good to be armed with this information when I call them back.

Since you seem to know your stuff, what would happen then if I became self-employed halfway through the tax year (as I did). I carried on paying into exactly the same scheme but straight out of my bank account.

noh

crayola wrote: »

OK, thanks noh. Will be good to be armed with this information when I call them back.

Since you seem to know your stuff, what would happen then if I became self-employed halfway through the tax year (as I did). I carried on paying into exactly the same scheme but straight out of my bank account.

No difference they are still personal payments and tax relief will be claimed at source by the Pension Provider.

Here is a link to the stakeholder FAQs on HSBCs web site.
http://www.hsbc.co.uk/1/2/personal/investments/saving-for-retirement/pensions/faq#how_much_can_be_paid