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Tax relief on pension contributions isue with HMRC online SA tool
dom_london
Posts: 10 Forumite
Hello!
I am contributing to an overseas pension scheme where the scheme does not take any of my tax relief entitlements into account.
I am a higher-rate taxpayer, and my income is quite above the 40% threshold, which means that a major part of my income is taxed at 40%; for this part, for every £100 I receive from my employer, there is only £60 left on my payslip.
Now, if I understand tax relief properly, this means that for every £60 I contribute to the overseas scheme, I should receive £40 back from HMRC (the tax I paid on the original £100).
I am trying to obtain repayment of the amounts I am entitled to via the Self Assessment tool on HMRC's web site.
Within section 4 on the SA tool (called "Paying into registered pension schemes and overseas pension schemes"), I am adding the amount I have contributed to the overseas scheme in the box called "Payments to an overseas pension scheme which is not UK-registered which are eligible for tax relief and were not deducted from your pay before tax").
Once done, when I go to the "calculate" page, the amount of tax I owe is the same regardless of the amount I enter in the box above (whether I put 0, or the actual amount, or even something grossly inflated like £50,000 or £100,000 just to see what would happen).
Can anybody explain me why the tool does not correctly assess & report the fact that I should get money back for my contributions? I am missing something somewhere but don't know what.
Any help greatly appreciated!
Dom
===========================
For the record, what I am trying to achieve (or the basis for my question) is what is described on the HMRC web site page pensionschemes/relief-overseas.htm (called "Tax relief on contributions to overseas pension schemes"), which mentions the following:
What qualifies for tax relief:
Tax relief may be given to:
- you on your contributions
- your employer on their contributions
I am contributing to an overseas pension scheme where the scheme does not take any of my tax relief entitlements into account.
I am a higher-rate taxpayer, and my income is quite above the 40% threshold, which means that a major part of my income is taxed at 40%; for this part, for every £100 I receive from my employer, there is only £60 left on my payslip.
Now, if I understand tax relief properly, this means that for every £60 I contribute to the overseas scheme, I should receive £40 back from HMRC (the tax I paid on the original £100).
I am trying to obtain repayment of the amounts I am entitled to via the Self Assessment tool on HMRC's web site.
Within section 4 on the SA tool (called "Paying into registered pension schemes and overseas pension schemes"), I am adding the amount I have contributed to the overseas scheme in the box called "Payments to an overseas pension scheme which is not UK-registered which are eligible for tax relief and were not deducted from your pay before tax").
Once done, when I go to the "calculate" page, the amount of tax I owe is the same regardless of the amount I enter in the box above (whether I put 0, or the actual amount, or even something grossly inflated like £50,000 or £100,000 just to see what would happen).
Can anybody explain me why the tool does not correctly assess & report the fact that I should get money back for my contributions? I am missing something somewhere but don't know what.
Any help greatly appreciated!
Dom
===========================
For the record, what I am trying to achieve (or the basis for my question) is what is described on the HMRC web site page pensionschemes/relief-overseas.htm (called "Tax relief on contributions to overseas pension schemes"), which mentions the following:
What qualifies for tax relief:
Tax relief may be given to:
- you on your contributions
- your employer on their contributions
0
Comments
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You'd be better on the Cutting Tax Board - this is Benefits.0
-
Apologies, I have now posted in the correct section.
Please do not post responses here. Thread closed.0
This discussion has been closed.
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