Earn 54k , pension and CITR a should mean tax rebate ?

bubblybabe

Hello !

I hope someone can help me 

In 20/21  my gross earnings were 54615k  (PAYE deducted at source  of £8594)

I have a CITR credit of 2k per year and contributed as a one off 32K, into my stakeholder pension. 

1437 tax codeM

When I put figures into self assessment form to get the tax rebate for CITR and pension, it shows over 1K more tax to pay ?

I feel so confused

Any help from the skilled members of this thread would be so much appreciated !🙂

best wishes 

Cari

Dazed_and_C0nfused

If you post details of the calculation it should be possible to explain what (if anything) is wrong.

Have you factored in the limited amount of higher rate tax you appear to be liable at?  The pension contribution won't save a huge amount of tax as it just increases your basic rate band, you don't get an extra 20% relief on the whole £32k.

A breakdown of how your tax code was calculated would help as 1437M means you have some non standard elements.

bubblybabe

Many thanks Dazed

...the code is because I have the transferred marriage allowance  
What confuses me is that I am PAYE so puzzled why showing underpayment 

 and why it is not showing the CITR rebate ?:/

Dazed_and_C0nfused

Marriage Allowance on its own would have given a tax code of 1375M.

Nothing unusual at all at being underpaid on PAYE.

What did you enter for CITR?

As originally stated you really need to post details of the calculation otherwise it's all guesswork.

Jeremy535897

Your code is higher than it would be just because of a marriage transfer allowance. That would make it 1375M. Something else has increased it to 1437M.
 CITR is usually given at the rate of 5% per year for 5 years. A £2,000 credit a year implies an investment of £40,000. Is this correct?
The maximum additional tax relief you will obtain on the pension contribution (which I suspect was net £42,000 plus tax £8,000) is £4,615 at 20% = £923.

bubblybabe

yes:) 

 40k CITR started in 20/21 tax year 

 earnings 54615k  (PAYE deducted at source  of £8594)

I  assume paye was on the all earnings, as all from one employment

bubblybabe

PS , Did have a previous CITR which gave  500 credit each year  

bubblybabe

found the detail as requested!
Note 3 Job Expenses £312
Note 4 Transfer of Allowance Your partner transferred full Personal Allowance to you.

bubblybabe

sorted !

I feel so stupid   and really appreciate the kind people on this forum who replied THANK YOU !

bubblybabe

admission of stupidity is ...:)

I'd put CITR in the wrong place  


but did so much appreciate the help on this forum

Dazed_and_C0nfused

Don't forget claiming the WFH allowance (on your tax return) will slightly reduce the amount of higher rate pension tax relief due.