Claiming Pension Tax Relief - Higher Rate Tax Payer

Icenaj01

I would be grateful for some advice re. claiming higher pension tax relief and HMRC.

I have a workplace pension with Aviva into which I occasionally make ad hoc contributions and where they claim the basic tax relief for me. 

As I am a higher rate tax payer I understand that I can claim back the extra higher rate tax relief from up to four years ago, but this has to be actioned via HMRC. 

I have telephoned HMRC and explained that I do not complete an annual tax assessment as everything is done via PAYE and that I used to complete the assessment form, but several years ago HMRC informed me that I do not need to do this any longer.  The person at HMRC replied that I should complete Form SA200 which can be found on their website.

However, on checking the website it appears that although the form is there, the instructions say that the Form SA200 should only be completed on instructions from HMRC and that it's not possible to download it. So will HMRC send me a physical form on request even though the person I spoke to seemed to think it could be completed online? 

If anyone else has claimed the higher rate tax relief and who does not complete an annual tax assessment I would be grateful to know how they did it – it might save me another hour waiting on the phone for HMRC to answer!

 

Dazed_and_C0nfused

There is normally no need to complete a Self Assessment return just to claim tax relief on pension contributions.

There are fairly strict criteria about who can complete the SA200 and I doubt it is that going to be a realistic option.  And it's not necessary.

You just need to get the relevant information together for each tax year and provide it to HMRC, probably in letter format for that many years.

Do you understand how higher rate tax relief on "relief at source" pension contributions works?  There is no automatic extra 20% and it can impact other things which might be useful i.e. eligibility for Marriage Allowance and amount of savings nil rate band.

Finally, HMRC only ever allow pension tax relief for the tax year the contribution the pension payment was made in.  But they may assume you will make similar contributions in the current tax year and adjust your current tax code to reflect this.  Any adjustment to your current tax code is purely to allow some provisional tax relief for the current tax year, it is not to allow tax relief for any of the previous 4 years.

Icenaj01

Thank you for your reply. 

I'm afraid I'm an absolute novice when it comes to pension tax relief!  Re the impact you mentioned, I'm not married and the amount of interest earned on my taxed savings is not enough to breach the higher rate savings nil rate tax band. 

So the way forward is to write a letter to HMRC with all the information?  I read somewhere that you would receive any higher rate tax relief by way of an actual cash rebate from HMRC. I have made some ad hoc payments into the pension though this tax year - so my tax code for this year would be adjusted?  I'm looking to retire in the new tax year. 

Sorry if I come across as a numpty!

Dazed_and_C0nfused

HMRC will recalculate your tax position for all the older years involved (back to 2016:17 if necessary and a claim is made for that year by 5 April 2021).

You would normally get a single refund for all 4 years combined (but will get separate calculations for each tax year).

You should make it clear that they are "relief at source" contributions and that the gross amount you are claiming relief on includes the basic rate tax relief added by the pension company.

For this tax year you should provide an estimate of what you expect your P60 to show your taxable pay as along with the gross amount you expect to contribute in this tax year.

Your tax code should be updated to reflect this but any refunds for all previous tax years will come direct to you.

Icenaj01

Thanks very much for the explanations @Dazed_and_confused - very helpful.