SIPP tax relief

AnonFIREUK

I am a higher rate tax payer, and I put what I earned over 40% into my SIPP for tax year 2018/19. I was under the impression that my tax code would be changed for this or I would be given a refund. However I have phoned up HMRC, gave them the gross contributions (what i deposited into SIPP + 20%), and they did not seem to understand what I was talking about and wanted me to write a letter to HMRC.

I was just wondering what the normal process of getting tax relief would is? and whether there is an easier way rather than having to write a letter to HMRC.

xylophone

https://www.aegon.co.uk/support/faq/pension-technical/claiming-tax-relief-pp-faq.html

Dazed_and_confused

HMRC never give tax relief on pension contributions for one tax year through your tax code for a different tax year.

So if you are contacting them now (in 2019:20) in relation to your 2018:19 pension contributions then no you cannot have your tax code adjusted.

HMRC may choose to adjust your 2019:20 tax code on the assumption that you will pay similar pension contributions again in 2019:20 but that is completely separate to any tax relief which may be due for your 2018:19 contributions.

The mechanism for getting any tax relief due for 2018:19 depends on a few factors.

Are you due to file a Self Assessment return for 2018:19?

Were the contributions (the gross amount including the basic rate tax relief allowed at source) more than £10k?

Do you have any company benefits?

Do you receive any savings interest (ignoring ISA's or any other genuinely tax exempt accounts)?

Also you do realise there is no set extra 20/21% relief due, the gross contribution simply increase the amount of basic rate tax you can pay. Which can in turn reduce the higher rate tax payable but the exact amount of relief due depends on your total taxable income.

AnonFIREUK

Thank you.

1. I am not due to file a self assessment for 2018/19
2. Total gross contributions were 9k
3. No company benefits
4. Some interest ~200 pounds. Below the £500 allowance for higher rate tax payers

My total taxable income was around 56k

Albermarle

and whether there is an easier way rather than having to write a letter to HMRC.

It is not that difficult , just write them a letter with your details and they will give you a nice rebate.