Pension contribution - Tax relief

Ximian

I'm a higher rate tax payer and (PAYG no self assessment) and last year (March 2012) I sent a letter to HMRC informing them that I paid a lump sum into my personal pension fund (approx £3k). I checked my personal pension statement and saw that the 20% tax relief was automatically added.
I provided personal pension statements to HMRC that displayed the regular contributions and the lump sum payment made to my pension fund.

I still have not heard anything back from HMRC regarding my pension tax relief.
Does it normally take this long to hear back from HMRC?
Should I mail another letter to HMRC?

How does the HMRC provide the additional tax relief that is owed on pension overpayments?

TIA

Financial_Adviser1

You need to claim it back through self-assesment I'm afraid.

jem16

Ximian wrote: »

I'm a higher rate tax payer and (PAYG no self assessment) and last year (March 2012) I sent a letter to HMRC informing them that I paid a lump sum into my personal pension fund (approx £3k). I checked my personal pension statement and saw that the 20% tax relief was automatically added.

Yes that would be normal. Only basic rate tax relief would be added.

I provided personal pension statements to HMRC that displayed the regular contributions and the lump sum payment made to my pension fund.

I still have not heard anything back from HMRC regarding my pension tax relief.

They would normally have answered your letter. Tax relief is often sorted out through an increase in your tax code. Has your tax code been changed for 2012/13?

Does it normally take this long to hear back from HMRC?
Should I mail another letter to HMRC?

I would have expected a reply from HMRC long ago. However I would phone up and find out what's happening rather than write again.

How does the HMRC provide the additional tax relief that is owed on pension overpayments?

Either through an increase on your tax code (probably preferable) or an actual refund.

Are you definitely due higher rate tax relief? You say you made regular contributions plus paid a lump sum - is that total amount the amount you are in the higher rate tax band by?

Financial_Adviser1 wrote: »

You need to claim it back through self-assesment I'm afraid.

SA is not necessary unless you meet the requirements for it. If the OP does not already complete a tax return it would not be needed just to claim higher rate tax relief.

somethingcorporate

Have you checked your coding notice? they may have already taken it into account in your tax code so it goes into your net pay rather than directly into your pension.

Ximian

jem16 wrote: »

They would normally have answered your letter. Tax relief is often sorted out through an increase in your tax code. Has your tax code been changed for 2012/13?

I actually received my new code code last week. For 2013/2014 it's as follows: 875L (I get a taxable medical insurance through work £642, the new Tax change also included an underpayment restriction of £41, -£683 taken off my tax free allowance of 9440)

For the Tax year 2012/2013 my Tax code is 756L (8105 minus the medical insurance of £642)

I had a look through some of my previous salry slips and found one for November 2012 includes the Tax code 746L M1, I'll see if I can find some other slips that cover the whole of 2012 and see if anything changed.

jem16 wrote: »

Are you definitely due higher rate tax relief? You say you made regular contributions plus paid a lump sum - is that total amount the amount you are in the higher rate tax band by?

I believe that I'm due higher rate tax relief, I do pay 40% tax and the lump sum that I paid was paid by cheque.

somethingcorporate

What was your total taxable pay for the those years in question? (from your P60s).

It does appear from your detailed figures of your tax codes that they have not taken it into account.

taking_stock

Financial_Adviser1 wrote: »

You need to claim it back through self-assesment I'm afraid.

not necessarily true - can normally be done with a phone call or letter for those who dont otherwise complete a self-assessment.

to whom are you a financial adviser??

Ximian

I just checked my old salary slips from last year and I was on tax code 755L for most of the year until September, then the code changed to 746L M1, and has been the same through to January 2013.

jem16

Ximian wrote: »

I actually received my new code code last week. For 2013/2014 it's as follows: 875L (I get a taxable medical insurance through work £642, the new Tax change also included an underpayment restriction of £41, -£683 taken off my tax free allowance of 9440)

For the Tax year 2012/2013 my Tax code is 756L (8105 minus the medical insurance of £642)

Neither of those are including an allowance for tax relief on pension.

I had a look through some of my previous salry slips and found one for November 2012 includes the Tax code 746L M1, I'll see if I can find some other slips that cover the whole of 2012 and see if anything changed.

The M1 code wasn't good as it's non-cumulative. Any idea why?

I believe that I'm due higher rate tax relief, I do pay 40% tax and the lump sum that I paid was paid by cheque.

Really need figures. For example if you were only into the higher rate tax band by £1k but paid £4k into your pension, you would only get higher rate tax relief on that £1k and not the whole £4k.

Ximian

jem16 wrote: »

Neither of those are including an allowance for tax relief on pension.

The M1 code wasn't good as it's non-cumulative. Any idea why?

No idea why the code changed, I never received any correspondence from HMRC that my tax code would change.

jem16 wrote: »

Really need figures. For example if you were only into the higher rate tax band by £1k but paid £4k into your pension, you would only get higher rate tax relief on that £1k and not the whole £4k.

Thanks Jem16, that makes a bit more sense to me. I thought you'd get higher rate tax relief on any lump sum contributions regardless of how much you paid.

jem16

Ximian wrote: »

Thanks Jem16, that makes a bit more sense to me. I thought you'd get higher rate tax relief on any lump sum contributions regardless of how much you paid.

No you only get higher rate tax relief on the amount that you actually pay higher rate tax on, whether it's regular contributions or lump sum contributions.