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Next year personal allowance is high because of personal pension relief - should I call HMRC?
btcp
Posts: 310 Forumite
in Cutting tax
I paid 11K into my pension last year, in additional to my salary sacrifice. I received a new tax code today, where my personal allowance is relatively high - I believe because they assume I will be making the same contribution to the pension this tax year. I am not sure if I am planning to make the same pension contribution. Would it be a good idea to call HMRC and ask to amend it assuming no additional contribution would be made? Otherwise I will end up in a situation of owing tax at the point of next self assessment. Is that right?
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The tax office has included the relief within your code so it's done at source, assuming you will make a similar contribution. Over the year you will pay a little less tax, so if your contributions this year won't be at the same level you would owe tax.
If you log into your personal tax account, you can update your tax code that way or give them a call.1 -
Thanks, you confirmed my assumption. I will give it a go with online first, prefer to self serve if I have a choiceyorkiechick said:The tax office has included the relief within your code so it's done at source, assuming you will make a similar contribution. Over the year you will pay a little less tax, so if your contributions this year won't be at the same level you would owe tax.
If you log into your personal tax account, you can update your tax code that way or give them a call.
in the past I wasn’t successful though, tried to update something online and they sent me a letter few weeks later asking to call and clarify.
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