End of year Income Tax question

CDB199

Just received my p60 for the yr ending 2011/12. code 1072L.

I pay 40% tax and pay into a private stakeholder pension.
(£5800 p/a)

Do i need to claim the relief on the difference?? or should everything be calculated correctly??

I have had this pension for the past 4 yrs so could have to check previous years!

uktaxcalculator.co.uk seems to think i may be owed £1700??

jamesd

You need to tell HMRC the amount paid into the pension after 25%* has been added for basic rate tax relief and call this the gross amount of the contribution. To avoid doubt also tell them the net amount you actually paid in yourself and let them know that you are expecting a refund of higher rate tax.

You'll get the 25% added to the pension pot a month or two after you make the payment into the pension scheme.

*Yes, 25%. Adding 25% to the amount paid in gets back the 20% deduction of basic rate tax.

CLAPTON

you don't say what you salary is
you don't say whether you have benefit in kind
you don't say whether you make occupation pension payments
you don't sasy why you tax code is 1072L when the 'normal' code would be 747L


however if you were making your 5,800 private pension from income taxed at 40%
then your gross payment is 5,800/.8 = 7250
and you would be entitled to a refund from HMRC of 20% ie. 1450

that could be achieved by making a tax code adjustment of 1450/.4
= 3625
so you code would be 747+362 = 1110L

CDB199

Clapton - thanks for taking the time to respond. here's some extra info so hope you can help further?

salary - 43,333 + 26,000 bonus = final income 69,333
benefits - none
private pension - no occupational payments
pay 5800 p/annum into private stakeholder pension (halifax)

further to this, i have been paying into the pension for last 3/4 yrs so could have similar issue in back years, but assumed the higher rate tax was reclaimed for me.

CLAPTON

well it would seem that your higher than normal tax code is indeed 'reclaiming' some of the higher rate tax

the code 1072L means you are being allowed extra tax relief of 3250 i.e. 10725-7475

whereas you should be entitled to 3620
i.e. a difference of 370
i.e. you are owed a refund of 40% of 370 = £148

ceeforcat

How did you finally resolve this two years ago?

https://forums.moneysavingexpert.com/discussion/comment/34001887#Comment_34001887

CDB199

Have called hmrc as halifax pension does not claim any of the higher rate extra 20% relief.

hmrc asked me to put all the details in writing as i have been paying into the pension since 2007. have to list earnings and pension pot figures for past 4 yrs.

does the 1072L code suggest that i am not entitled to 20% of the 5800 that i am paying in??

CLAPTON

CDB199 wrote: »

Have called hmrc as halifax pension does not claim any of the higher rate extra 20% relief.

hmrc asked me to put all the details in writing as i have been paying into the pension since 2007. have to list earnings and pension pot figures for past 4 yrs.

does the 1072L code suggest that i am not entitled to 20% of the 5800 that i am paying in??

the 1072L suggests you are gettting some of the tax relief but not all of it as explained in my post above and it wouldn't be 20% of 5800 as explained above too

what were your tax code for the previous years?

Carol8353

Thought you would like to know that I have successfully had £829.40 written off. HMRC agreed that I had met the terms of concession.

I have to thanks you for your ECS A19 letter template which I used for reference

Many thanks
Kind regards
Carol
:j

John_Pierpoint

Hi Carol,
Welcome to Money saving expert
It is interesting to hear that you have negotiated your way to getting an ESC A19 write off of old tax owing.
However your posting is a bit out of place in this thread, which is about reducing the additional rate tax liability of someone making payments into a pension scheme.
You posting could be more useful in a thread such as this one:
https://forums.moneysavingexpert.com/discussion/3878575
Especially if you can give some information about how long it took and the information you were able to give to get a successful result.
Many people posting on here get put off by the initial brush off they tend to get, when trying to claim the Extra Statutory Concession..

CDB199

Clapton, some figures for you:

2007/8
Earnings - 79,333
pension - 5,700
tax code - 792L

2008/9
Earnings - 56,848
Pension - 6,384
code - 998L

2009/10
Earnings - 50,333
Pension - 6504
code - 1042L

2010/11
Earnings - 60,833
Pension - 6,564
code - 972L

2011/12
Earnings - 69,333
pension - 6800 (sorry, gave wrong figure in earlier post)
code - 1072L

If you could take the time to go through these it would be much appreciated as don't want to have to send figures of to the hmrc for the sake of it.

thanks again