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Tax Relief Rebate
checco
Posts: 1 Newbie
HI,
I just discovered that I am eligible to and extra 20% tax relief for my pension contribution.
I have been on the 40% Tax bracket since 2011/12.
From what I can see, I can only claim the last 4 years of my pension contribution.
Is there a way to calculate the amount the HMRC owe me?
I have been reading and looking at quite few threads and I cannot see a formula or anything.
I am struggling to understand the pension part as some of the people say I contributed 40K on a 60K salary.
Can someone help me on understanding the pension side and tax relief?
Thank you
Regards
Checco
I just discovered that I am eligible to and extra 20% tax relief for my pension contribution.
I have been on the 40% Tax bracket since 2011/12.
From what I can see, I can only claim the last 4 years of my pension contribution.
Is there a way to calculate the amount the HMRC owe me?
I have been reading and looking at quite few threads and I cannot see a formula or anything.
I am struggling to understand the pension part as some of the people say I contributed 40K on a 60K salary.
Can someone help me on understanding the pension side and tax relief?
Thank you
Regards
Checco
0
Comments
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From what I can see, I can only claim the last 4 years of my pension contribution.
Why just 4? HMRC generally work to 6 years.Is there a way to calculate the amount the HMRC owe me?
yesCan someone help me on understanding the pension side and tax relief?
What type of pension do you have?
Is it paid via direct debit or via your payslip?
Is via payslip, is it paid before you are taxed or after?
I will just ask those three for now but there are more variables but these 3 should reduce the number of questions.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Is there a way to calculate the amount the HMRC owe me?
Yes, the gross pension contribution (your payment plus basic rate relief added by the pension company) increases the amount of basic rate tax you can pay in the relevant year(s).
Note you do not get an additional 20%, your tax is recalculated as explained above. Which may produce an additional 20% but that is extremely unlikely. And this assumes you are talking about a relief at source scheme.
Have you filed Self Assessment returns for any of the years impacted?I am struggling to understand the pension part as some of the people say I contributed 40K on a 60K salary.
Who are these people?0 -
HMRC normally only allow any claims for 5 years (the current tax year and previous 4 years).0
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Dazed_and_confused wrote: »HMRC normally only allow any claims for 5 years (the current tax year and previous 4 years).
The OP had best get cracking then on this. Needs to be done before the 5th April before it rolls into a new tax year with nothing to claim on it.0
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