Tax refunds from previous years

albert101

Hi guys,

Request some advice.

Until this year I have never done a tax return. I think it's because in 15-16 I just crept over the £100k level. I did the tax return, and the good news is that I am due a reasonably chunky low 4 figure rebate, it seems.

My tax affairs are reasonably simple and I get virtually all my income from my employer.

The past years have not been materially different for me taxwise, so my suspicion is that I may be owed from previous years as well now. What is the best route to investigate this? Has anyone any experience of this?

cheers,

Albert

Dazed_and_confused

The common theme posted on here for people in your situation is that they owe tax the first time they earn over £100,000 so you'd need to give more info to get a useful answer.

What have you put on your return which has resulted in a tax refund?

albert101

Thanks. My income was £101k. P60 states I paid £31k in tax in total. MSE's tax calculator for 15-16 suggests I should only have paid £23k in tax, so I suspect that this partially explains it. I get benefits like family private health etc. which may make an impact. I did have some capital gains over year but well short of the threshold. I pay £12k approx into pension PA.

Dazed_and_confused

Think you've gone wrong somewhere, have just stuck £101000 into MSE calculator and tax due 2015/16 is just over £30k not £23k

Anyhow I wouldn't rely on that for your situation as it's far too complex for a generic calculator like that.

You are best off completing the self assessment return and checking that calculation (you can save it and submit it to HMRC later)

Pension payments may not be relevant either, all depends on what they are exactly, for example if pay was actually £113000 and you made £12000 payments into company pension then you've had the tax relief allready and it doesn't get entered on your tax return (that's why you're P60 would show £101000 not £113000).

If it's a personal pension it would be different

[Deleted User]

Yes - if a personal pension the op might not be too far off the mark with £23000.

albert101

I did advanced options to add £1k PA pension, also £100pm childcare vouchers. Error in my above post but still states tax of £25.5k. Have £8140 allowance.

[Deleted User]

I think that you need to clarify what dazed and confused was suggesting.

Do you pay £12 into a PERSONAL pension scheme outside of your employment (or from net salary) or is £101000 your salary after COMPANY pension contributions of £12000 which is taken from your GROSS salary? Big differences!

albert101

Thanks

Total income 101k. Total pension contribs into company pension, of £12k a year, of which 41% come from company contrib, rest from me.

[Deleted User]

albert101 wrote: »

Thanks

Total income 101k. Total pension contribs into company pension, of £12k a year, of which 41% come from company contrib, rest from me.

And is this from gross pay or net pay? It really does make a difference.

If it is from gross pay your taxable income is £93920 - £101000 less pension £7080.

If it is from net, your taxable income is £101000 and you have to claim the higher rate relief through your tax return.

Most likely scenario is the former.

albert101

OK - thanks for your help - I gather pension payment is a 'salary sacrifice' scheme.

I have put the pension payments into the "Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source)." box on the SA form.

Should I in fact have put the payments into the "Payments to your employer's scheme which were not deducted from your pay before tax" box?

NordicNoir

albert101 wrote: »

OK - thanks for your help - I gather pension payment is a 'salary sacrifice' scheme.

I have put the pension payments into the "Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source)." box on the SA form.

Should I in fact have put the payments into the "Payments to your employer's scheme which were not deducted from your pay before tax" box?

For salary sacrifice, it is not entered onto the tax return at all. HMRC consider this a 100% contribution from your employer. You have not paid any tax on that amount, so there is no relief to claim.