AVCs question

tigerspill

jem16 wrote: »

There is no need to do a tax return just to claim higher rate tax relief. A simple phone call to HMRC who will adjust the tax code will suffice.

However what I meant was how long has she been a higher rate taxpayer and has she been claiming for that extra tax relief since then.

I actually prefer to complete a tax return as then I know exactly where I am.
I don't really understand all the calculations, but the last two years, between my wife and I we have received rebates for £1000 between us each year. I think these are down to incorrect codings.
So for us, completing tax returns has been well worth it. They aren't that difficult.

jem16

tigerspill wrote: »

I actually prefer to complete a tax return as then I know exactly where I am.

I do too but it all depends on how complicated your tax affairs are. If it's one income source plus a pension contribution there shouldn't be any need.

I don't really understand all the calculations, but the last two years, between my wife and I we have received rebates for £1000 between us each year. I think these are down to incorrect codings.

The tax codes can only be as good as the information that you give them. If you can give them accurate information on your total income, including any interest etc and pension payments then it should be reasonably accurate.

So for us, completing tax returns has been well worth it. They aren't that difficult.

I'd agree, especially done online.

tigerspill

jem16 wrote: »

I do too but it all depends on how complicated your tax affairs are. If it's one income source plus a pension contribution there shouldn't be any need.

The tax codes can only be as good as the information that you give them. If you can give them accurate information on your total income, including any interest etc and pension payments then it should be reasonably accurate.

I'd agree, especially done online.

The only thing that complicates my tax is I share a couple of BTL properties.

TBH, I never have contacted the HMRC regarding tax code issues. The only information they have is from my submitted tax forms, which really should be enough as my circumstances haven't really changed in years and the numbers are very sillily year to year.

I just rely on my tax return to sort it out each year. And this seems to work OK.

I do have a related AVC question.

I am making a significant AVC payment at the minute (doing salary sacrifice from April). My aim is get back to being a BRT tax payer.

I know I can add this to my tax return, but probably wont do this until after the summer for this year. I believe you can call the HMRC and tell them about the payment and they will send you the rebate.
From what I understand my company AVC scheme (BT) takes my cheque and lodges this (gross) amount to my AVC. They don't add BRT. Therefore I need to get all the tax back myself. I wrote a check for a rounded amount guessing how much 40% tax I would be paying and added a bit on to be sure. So while most will have been taxed at HRT, some might be at BRT. If I call the HMRC, how will they know how much to send me back without my full ax return?

jem16

tigerspill wrote: »

TBH, I never have contacted the HMRC regarding tax code issues. The only information they have is from my submitted tax forms, which really should be enough as my circumstances haven't really changed in years and the numbers are very sillily year to year.

I just rely on my tax return to sort it out each year. And this seems to work OK.

The only problem with that method is that you are overpaying tax and only getting it back later.

If I call the HMRC, how will they know how much to send me back without my full ax return?

They can't without knowing your total income so I would be surprised if they can do this before the end of the tax year.

I have no idea if they would accept your estimate of your total income.

tigerspill

jem16 wrote: »

The only problem with that method is that you are overpaying tax and only getting it back later.

They can't without knowing your total income so I would be surprised if they can do this before the end of the tax year.

I have no idea if they would accept your estimate of your total income.

Agreed. That is why I was asking as others have said I can just call them up to get the tax back. But can't see how that works.
I might just have to get the finger out and do my tax return sooner.

xylophone

If I call the HMRC, how will they know how much to send me back without my full ax return?

Details of your income as a hit man in the US of A?:eek: