Reclaiming pension tax relief - how long does it take?

techno12

Hi.

I sent a letter to my tax office around 7 weeks ago, informing them that as I've been a higher-rate tax payer for 08/09, 09/10 and the first 9 months of 10/11 I'm due a refund on my pension contributions (relief given at 20% when it should be 40%). I moved onto salary sacrifice at the start of 2011 hence why I'm just claiming for 9 months this tax year.

How long do these things usually take? I thought they'd have at least acknowledged my letter by now, but maybe it's the 'busy season' for them or something, or perhaps they really do take their time...

Thanks in advance!

CLAPTON

what sort of pension do you pay into?

dori2o

Was your letter clearly marked REPAYMENT? If not it will have gone into the general post stream. There is currently a backlog of approx 8-10 weeks on general post.

Also, could you advise what your level of paymets was for the 08/09 and 09/10 tax years, and wheher this was taken from your salary or paid seperately.

lisyloo

It could take some time.
When I did my last letter I think I was advised they were taking 6 weeks to open post.

Goldenyears

In my pension refund claim experience, admittedly in late 2008, HMRC needed full details of all income sources for at least 2 years back plus last P60 maybe, plus documentation proving the pension contribution. HMRC may send query letter if they are not sure about your current tax position which delays things.

techno12

Hi.

Well after not hearing a thing for 10 weeks I called them up the other day and they said there's no 'note on my file' so the letter may not have been opened yet. Apparently they'll call me up at some point, but I'm skeptical.

Just got off the phone again now and a very terse guy who said that it would take up to 3 weeks to get the call back, and if I were to send a letter again it'd be sometime in June before they'd process it.

All my original letter said was that I want to claim for 3 years, and that I have the documents to hand. I haven't included any figures or documents - I'm waiting for them to get in touch to say if they want anything.

I shouldn't have to send original P60s off surely, as HMRC issued them originally and must have them in electronic form!

This is annoying. I pay into a company scheme (Group Stakeholder Plan) and it's definitely taken from my PAYE salary with 20% relief, not the 40% it ought to be, or it was until I moved to salary sacrifice. I ought to be a simple case, just a bog-standard employee who's been over the higher-rate threshold for 3 years now, and who has next to no other income apart from £1 or so interest a month from my bank, my savings being in ISAs.

suso

techno12 wrote: »

Hi.

Well after not hearing a thing for 10 weeks I called them up the other day and they said there's no 'note on my file' so the letter may not have been opened yet. Apparently they'll call me up at some point, but I'm skeptical.

Just got off the phone again now and a very terse guy who said that it would take up to 3 weeks to get the call back, and if I were to send a letter again it'd be sometime in June before they'd process it.

All my original letter said was that I want to claim for 3 years, and that I have the documents to hand. I haven't included any figures or documents - I'm waiting for them to get in touch to say if they want anything.

I shouldn't have to send original P60s off surely, as HMRC issued them originally and must have them in electronic form!

This is annoying. I pay into a company scheme (Group Stakeholder Plan) and it's definitely taken from my PAYE salary with 20% relief, not the 40% it ought to be, or it was until I moved to salary sacrifice. I ought to be a simple case, just a bog-standard employee who's been over the higher-rate threshold for 3 years now, and who has next to no other income apart from £1 or so interest a month from my bank, my savings being in ISAs.

HMRC wouldn't know how much you are paying into the pension.you will need to provide the annual figures.

HMRC do not issue the P60's they are issued by your employer, all they show to HMRC is the amount of taxable pay and tax deducted along with student loans / national insurance figures.

Write into HMRC detailing the pension contributions for each financial year, also list any other forms of income, (bank or building society interest, dividends etc.)

Mark it as a repayment claim

It will take approx 6 weeks to process, and no acknowledgement will be sent,

If you haven't supplied figures, the phonecall will be very simple, it will be a case of send in the info, so rather than wait for the callback send the info in now.

j-josie

If it's a company pension scheme and your contribution is shown as a deduction on your pay slip, then I would have thought the pension plan was part of the 'net pay scheme' whereby the contribution is taken from your gross pay before tax is calculated. That removes that slice of your income from being taxed, therefore you get full tax relief at source (including higher rate relief)
Or have i misunderstood the position?