LGPS/Low Earner/Tax Question

jem16

wannaretireearly wrote: »

The way it reads is that i can claim tax relief on this via self assesssment (so long as i earn this much in the current tax year) as it is a 'tax relief at source arrangement'.

Although normal contributions to the LGPS give you tax relief at source by paying less tax, the LGPS is not a Relief at Source scheme. A Relief at Source scheme is one where the provider adds on basic rate tax relief.

To obtain your tax relief you have to claim from HMRC. A tax return will not be necessary for just this one thing. What they will do is either adjust your tax code or give you a cheque refund. You may be best with the cheque refund. Just make sure you tell them that this is a lump sum payment to a Defined Benefit scheme where no basic rate tax relief has been applied.

If what you say about AVCs and new contracts from April 2014 is going to be introducted/maintained then this isn't really an option as though I have worked there since October 2012, I will be getting a new contract sometime between July and October 2015.
I will keep my ears open about the AVC situation as if it may be something to consider at a future date.

It's nothing to do with your work contract. The contract I meant was when you started the AVC - ie before or after April 2014.

wannaretireearly

Thanks so much. Now clear in both those areas.

Wow this forum is fantastic thanks to people like you jem16. I had tried to get information from the pensions department at work but they seemed to know as little as I did! Now I can email them with my intentions and explain what it means and how it will work....they might learn something:)

jem16

wannaretireearly wrote: »

Now I can email them with my intentions and explain what it means and how it will work....they might learn something:)

Yes it would be useful if the pensions department actually knew about their pension scheme. We know they can't give you advice but information should be perfectly possible.

Always use the scheme's website for info too.