Help with overpayment relief claim

Ciwan

Hello everyone


Since Nov 2017 I have been a higher-rate tax payer and I have been making contributions to my pension.


I believe this makes me entitled to overpayment relief. I have found some official guidance notes here.


It says the following:

The person applying for overpayment relief must make a claim to HMRC for repayment or discharge of the amount of tax which they believe they should not have paid, or should not be due. Any existing self-assessment should be left unchanged.

• state the amount that the person believes they have overpaid.

I have all my pay slips from that period and I know that my personal contributions come to a total of £2588.41 but I don't think that's the amount of tax that I overpaid is it?


How do I work out the amount of tax I overpaid and that I am now due back?


Thank you.

molerat

Firstly, how did you pay the contributions ? If from your gross pay before tax then no refund is due.

Ciwan

It was automatically deducted from my payslip. Here's my payslip with personal information hidden.

Albermarle

You do not appear to be earning quite enough to be paying 40% tax ( threshold is £50K) unless you get an annual bonus or something similar ?

Anyway it looks like your contribution comes out after tax , so each pension contribution should have 20% tax relief automatically added to in your pension. So the £208.34 should become £260.43.
If you are paying 40% tax you have to claim back the extra 20% by contacting HMRC with the details .
You can not claim back more HRT than you actually paid .

molerat

Assuming 1250L, tax is correct on a figure of £3958.33 (£4133.67 - £208.34). NI, employers NI and SL are also based on that figure so you must be on a salary sacrifice scheme which reduces your liability to tax, NI and student loan repayments as well as your employer to their NI. Up to now you are not a higher rate tax payer, currently on track for £47500 post sacrifice, and no tax is reclaimable.

Triumph13

Quite possibly you were a higher rate tax payer in past years though before the threshold went up to £50k for this tax year. As Molerat has so ably demonstrated though it makes no difference as you are already getting the full tax relief through your payslip so nothing to worry about.