How do i claim the tax relief on my pension

redmalc

Hi I have been a director of a limited company for many years and used an accountant to complete my tax assesments each year,the company has recently been sold and i will not be a director so i will not need to fill in a tax assesment ,will i ?,the accountant has notified the HMRC about my pension contributions,i was wondering how i now advise the HMRC about my pension details,is it just a matter of calling them to advise them i am no longer a director.

bigfreddiel

redmalc wrote: »

Hi I have been a director of a limited company for many years and used an accountant to complete my tax assesments each year,the company has recently been sold and i will not be a director so i will not need to fill in a tax assesment ,will i ?,the accountant has notified the HMRC about my pension contributions,i was wondering how i now advise the HMRC about my pension details,is it just a matter of calling them to advise them i am no longer a director.

i would strongly recommend you keep doing a tax return at least until your directorship drops out of the equation - do it yourself - its not hard - remember the 2010-11 tax submission have only just closed

2011-12 will be due on 31 Jan 2013
2012-13 will be due on 31 Jan 2014

When my wife retired it took a year before her tax position was normalised - in her first year she had overpaid vie paye and received a nice tax rebate.

hope that helps


fj

dunstonh

Were the pension contributions via the company or personal contributions?

redmalc

My contributions were made myself into a personal pension

middlepuss

If you're a basic rate taxpayer you don't need to. You contribute £8000 and your SIPP manager reclaims £2000 from HMRC. If you're a 40% taxpayer, you need to let HMRC know you've contributed £10000 gross and you get a tax rebate of £2000.

However, you only get the tax relief on earned income. If all your income is dividends, investment income and pensions you have zero earned income and then can only put £3600 gross into a pension and get tax relief.

If you don't fill in a tax return you can write to your tax office and tell them what your gross pension contribution will be. Even if you do fill in a tax return, it may still be worth writing to them saying what your SIPP contributions will be in 2012/13 so they get you on approximately the right tax code. You only need to do this if you are a higher rate taxpayer.