Can anyone clarify?

eastcorkram

Would love some clarification on this too please, if anyone can help! I contribute to a company scheme via salary sacrifice, which equates to about 6,500 per year. My P60, which obviously does not include that figure, has gross earnings of approx 40,000. Now.........I also pay (out of nett income) £132 per month into a Personal stakeholder pension. This seems to get the 20 percent relief added each month, which the pension company claim for me.

I am hourly paid, and work overtime most weeks, but the amount of this varies. My tax code is 517L W. Does this mean that some weeks, if I work enough overtime, I am a 40% tax payer, and some weeks, if I don't do much OT, I am not??

I've never claimed anything extra, other than what they claim on my behalf. That is 20%.

I do not want to claim more, if it turns out later, that I'm not entitled to it!

Do I have to claim it each month, depending on how much I've earned that month?
If I phone HMRC, do I have to give them all the figures, or do they just work it out for me?
What would be the likely outcome if I call them? Increased tax code, or a refund?

jem16

eastcorkram wrote: »

I am hourly paid, and work overtime most weeks, but the amount of this varies. My tax code is 517L W. Does this mean that some weeks, if I work enough overtime, I am a 40% tax payer, and some weeks, if I don't do much OT, I am not??

For you higher rate tax will start at £36,955 so with £40k gross all of that extra PP payment should be attracting higher rate tax relief regardless of overtime or not.

I've never claimed anything extra, other than what they claim on my behalf. That is 20%.

I do not want to claim more, if it turns out later, that I'm not entitled to it!

It looks like you should be entitled to it.

Do I have to claim it each month, depending on how much I've earned that month?
If I phone HMRC, do I have to give them all the figures, or do they just work it out for me?

You just need to phone HMRC once a year and give them the gross figure - ie your contribution plus another 25% - that you contribute each year.

What would be the likely outcome if I call them? Increased tax code, or a refund?

You could ask them to give you a refund for the last 4 years and then to change your tax code going forward.

eastcorkram

jem16 wrote: »

It looks like you should be entitled to it.




You just need to phone HMRC once a year and give them the gross figure - ie your contribution plus another 25% - that you contribute each year.



You could ask them to give you a refund for the last 4 years and then to change your tax code going forward.

Many thanks for the advice. I rang them today. Despite the initial warning by the auto voice thingy that it would take 20 minutes for the call to be answered, it actually only took about 3.
They are sending me a cheque for previous years, and have adjusted the tax code for the current year, so that should change in the next week or two.

As the amount I pay in, even if I don't alter it, goes up by 10% per year, she advised me to phone HMRC once a year.

One thing though. It's mentioned in this thread a couple of times, to inform them of the gross amount of contribution (including the tax relief that is being claimed by the provider). I tried doing this. It did not go down well!! It was made perfectly clear, more than once, that the only figure she wanted was the amount that I actually pay in!

Other than that. All is good!

jem16

eastcorkram wrote: »

One thing though. It's mentioned in this thread a couple of times, to inform them of the gross amount of contribution (including the tax relief that is being claimed by the provider). I tried doing this. It did not go down well!! It was made perfectly clear, more than once, that the only figure she wanted was the amount that I actually pay in!

Other than that. All is good!

I would check the p2 Coding Notice then and see if they have worked it out on the gross amount as opposed to the net. From previous threads I would almost guarantee that it will be wrong if they have insisted on the net amount.

When you complete a tax return it is always the gross amount that you enter. If even tells you to add the contributions paid to the scheme plus the basic rate tax relief.

xylophone

See http://www.aspirafp.co.uk/aspira-inform/articles/missing-out-claiming-higher-rate-pension-tax-relief-mar-15

xylophone

And also https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/354204/sa150.pdf

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