Pension contribution & HMRC letter

giruzz

Hi,

I am a 40% taxpayer and I have been sending letters back and forth with HMRC. I just wanted to double check something. I have made these contributions to my private SIPP:

• 2018/2019: £5,800 (net contribution to the SIPP)
• 2019/2020: £4,950 (net contribution to the SIPP)

HMRC has sent a letter stating I have issued to you separately revised tax calculations for 2018 to 2019 and 2019 to 2020, which shows that an underpayment of tax has occured for each year. This is because your tax code included an allowance for gross pension contribution of 8000 but from the information you have provided the gross amount paid into your (Redacted) SIPP account for  2018 to 2019 was £7250 and for 2019 to 2020 the gross amount paid was £6188.
Shouldn't the gross contribution be respectively 9666 (5800 / 0.6)  and 8250 (4950 / 0.6) which would have meant a tax refund of 773.28 (9660*0.2*0.4) and 660 (4950*0.2*0.4) respectively?

If my calculations are correct, how do I get this fixed? I have tried to speak by phone but it's impossible - also impossible via Chat....
Thanks,
giruzz,

Brynsam

HMRC are correct. Your 2018/19 contribution to your SIPP is £5,800 + the basic rate relief claimed and added to your pot by the pension provider (i.e. £7250) - similar thing for 2019/20. 

Any higher rate tax claim reduces your tax liability; it is not paid into to your SIPP.

Asghar

giruzz said:

If my calculations are correct, how do I get this fixed?

What made you think that you know better than HMRC, who's sole job is to manage tax affairs?

It would be nice to listen to some of the calls they get, for a laugh.

bigadaj

HMRC do mess up, but not in this case.