Pension 40% tax relief question

somethingcorporate

gadgetmind wrote: »

Maybe they just don't trust me?

You could ring up and try again? I've found they often give completely conflicting information

gadgetmind

somethingcorporate wrote: »

You could ring up and try again? I've found they often give completely conflicting information

Thanks, but it's all sorted now.

But after the first call I put my accountant on it and he got the same answer (in writing) that said we had to submit the forms or they wouldn't accept I'd put the money into my pension.

Of course, that fact that they'd paid the 20% tax relief in the pension already didn't seem to be enough for them!

somethingcorporate

gadgetmind wrote: »

Thanks, but it's all sorted now.

But after the first call I put my accountant on it and he got the same answer (in writing) that said we had to submit the forms or they wouldn't accept I'd put the money into my pension.

Of course, that fact that they'd paid the 20% tax relief in the pension already didn't seem to be enough for them!

Very odd!

Well, if HMRC don't give us a new code then I will let you know!

gadgetmind

Maybe they decide to be awkward in a certain percentage of cases, or maybe my one off contribution was large enough to trigger something?

Anyway, just a warning to not delay regards telling HMRC in case they drag their heels.

jamiefly

I'm in a similar position to the OP with £10k of net contributions since May, grossed up to £12.5k and will make no further contributions this financial year. Is the tax code change for this year or next year? I was thinking of informing my tax office/self-assesment in April eagerly anticipating a cheque for £2.5k to against my mortgage, will this not happen now and they'll just amend next years tax code? I'm confused.

somethingcorporate

jamiefly wrote: »

I'm in a similar position to the OP with £10k of net contributions since May, grossed up to £12.5k and will make no further contributions this financial year. Is the tax code change for this year or next year? I was thinking of informing my tax office/self-assesment in April eagerly anticipating a cheque for £2.5k to against my mortgage, will this not happen now and they'll just amend next years tax code? I'm confused.

The code change will be for next year. I've never had a cheque for the relief (and nor has my wife) it's always been a change in code.

Judwin

There is a box on the tax return (at the end near where you sign it) where you can opt for any overpayment to be repaid by cheque/into a bank account instead of them adjusting your tax code. The choice is yours.

If I think the tax man owes me money, I always tick that box. I'd rather have the money repaid now rather than get it back in dribs and drabs over the following year.

I've had several large cheques from the tax man in recent years. I've always treated it as a windfall, and paid it into my pension for the current year, so I then get relief on it the following year.

Cheers
Judwin

somethingcorporate

Judwin wrote: »

There is a box on the tax return (at the end near where you sign it) where you can opt for any overpayment to be repaid by cheque/into a bank account instead of them adjusting your tax code. The choice is yours.

If I think the tax man owes me money, I always tick that box. I'd rather have the money repaid now rather than get it back in dribs and drabs over the following year.

I've had several large cheques from the tax man in recent years. I've always treated it as a windfall, and paid it into my pension for the current year, so I then get relief on it the following year.

Cheers
Judwin

Thanks, hadn't spotted that.

We actually owe tax from additional self-employed income so use the rebate for the pension to cancel this out so getting it back in dribs and drabs is fine but for putting into mortgages or back into the pension obviously a cheque is favourable :T

moneyfoolish

I'm in the same 40% position and I'm just about to start an AVC linked to my LGPS pension for 50% of my Pensionable earnings per month. I was assuming (and hoping) that the Revenue would automatically adjust my Tax Code so that I wouldn't have to start Self Assessment. Am I being too hopeful? I wasn't even planning on telephoning then but just allowing them to make an adjustment and pay me what they owed me when they do an end of year reconcilliation.

jem16

russell_anderson wrote: »

I'm in the same 40% position and I'm just about to start an AVC linked to my LGPS pension for 50% of my Pensionable earnings per month. I was assuming (and hoping) that the Revenue would automatically adjust my Tax Code so that I wouldn't have to start Self Assessment.

It won't be necessary to even involve HMRC.

If you are paying AVCs monthly to the LGPS it will normally be taken from your gross salary (same as normal pension contributions to the LGPS) before tax is taken. This means that tax relief is automatic with no need to adjust the tax code.

See;

http://www.lgps.org.uk/lge/core/page.do?pageId=102221

and

http://www.lgps.org.uk/lge/core/page.do?pageId=100827