Pension contributions and tax return

zedman_1

I am currently PAYE and don't have to complete a tax return.

Does anyone know what the maximum amount is I can pay into a SIPP before I have to complete a tax return?

In the past I have just telephoned and then written to HMRC to let them know how much I have contributed and they have been happy with this. I have had very conflicting advice every time I finally get through to HMRC.

Thanks in advance.

ossian

If you are a higher or additional rate tax payer then you want to complete a tax return to claim back the tax they owe you. If your not and as long as you pay in less than you earn in the year then your pension shouldn't trigger a requirement to complete a tax return.

zedman_1

Thanks for your prompt reply.

I am a higher tax rate payer and HMRC have been happy in the past with a phone call/letter letting them know how much I contribute to my pension. However the last time I increased my contributions one advisor at HMRC said I needed to complete as a tax return whilst another said a letter was fine. ( I contribute about £12,000 a year) There seems to be a threshold above which a tax return is required but no one seems to know what this threshold is, including HMRC themselves apparently!

Loughton_Monkey

I think you will find the 'correct' thing is to fill in a return.

Just about everyone has some money lurking in an interest paying account which will only take 20% tax. As a higher rate payer, you need to pay the other 20% - preferably before they catch up with you after receiving all the data from the Banks/Building Societies.