Pension tax relief

zagfles

Supernova wrote: »

Ah, OK.



Isn't the Salary Sacrifice reflected in the P60? I told them in the letter I had contributed £42K but that was incorrect.

Thanks

Did you tell them your PP contributions and your P60/P45 earnings? If so they should realise you've got too much tax relief, I'm not sure whether they'd charge you the excess tax directly or get a refund from the PP. From reading this it would seem they'd get it off the PP scheme but I've only had a quick glance... http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM05301000.htm

Supernova

jem16 wrote: »

No you're correct - it wouldn't.

I should have re-read the thread before replying.



Forget salary sacrifice - it's ( or most likely me with that last post ) confusing the issue.

You had £38k relevant earnings. You made £42k worth of PP contributions. That takes you £4k above your relevant earnings for tax relief purposes.

Well, I think I've disclosed everything I need to, so I'll see if they write to me again.

Thanks jem16

Supernova

zagfles wrote: »

Did you tell them your PP contributions and your P60/P45 earnings? If so they should realise you've got too much tax relief, I'm not sure whether they'd charge you the excess tax directly or get a refund from the PP. From reading this it would seem they'd get it off the PP scheme but I've only had a quick glance... http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM05301000.htm

Yes PP and P60 all disclosed.

Right, so potentially they could take the excess £800 relief back from my L&G pension pot?

Thanks

Supernova

Follow up letter received today saying that the 2012-3 tax calc was corrected taking account of the personal pension contribs.

The overpayment was because I had a higher rate restriction in my tax code of £926 for savings and investment income and since my salary was at basic rate they gave me back 20% of it.

Still don't know if that now has any bearing on the potential L&G overpayment?

zagfles

Supernova wrote: »

Follow up letter received today saying that the 2012-3 tax calc was corrected taking account of the personal pension contribs.

The overpayment was because I had a higher rate restriction in my tax code of £926 for savings and investment income and since my salary was at basic rate they gave me back 20% of it.

Still don't know if that now has any bearing on the potential L&G overpayment?

Sounds like it doesn't. From the above manual, particularly this page http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM05202030.htm it seems that you need to make a declaration that you won't contribute >100% of earnings to your PP, a bit like the declaration that you won't contribute too much to an ISA (though I don't remember ever making such a declaration - though I knew the rule so I may have). Maybe contact your PP provider and tell them?

jem16

Supernova wrote: »

Still don't know if that now has any bearing on the potential L&G overpayment?

I would doubt it. The issue here is that your PP provider would have added basic rate tax relief assuming you were entitled to it. As you said earlier you paid in roughly £32k and they added 20%. So your pension has more in it than it should.

As to your rebate, the figures from the P800 might help clarify what's happening if you want to post them.