I don't do a Self Assessment - how do I inform HMRC about pension contributions ?

AdamBrunt

Hi all,
On the advice of the HMRC I don't need to do a Self Assessment (I used to but they stopped asking me to about a year ago even though I have been a 40% tax payer with regular pension contributions for over 10 years).
Without completing a Self Assessment how do claim the additional tax relief on pension contributions ? Or do you just phone them up, hope they eventually answer, and just tell them ?

Dazed_and_C0nfused

Phone, letter, webchat.

Just make it clear which year the contributions were paid in and what you expect to pay in the current tax year.

All assuming you are referring to "relief at source" contributions

molerat

AdamBrunt said:

 Or do you just phone them up, hope they eventually answer, and just tell them ?

As a starting point, yes.
https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

AdamBrunt

Dazed_and_C0nfused said:

Phone, letter, webchat.

Just make it clear which year the contributions were paid in and what you expect to pay in the current tax year.

All assuming you are referring to "relief at source" contributions

We are talking about a work pension scheme where the pension company have already claimed the basic rate tax relief (and added it to the pension contributions, if you know what I mean) and I am now just claiming the additional 20% relief.
I wonder if filling out an SA100 tax return form would achieve the same result ?

Marcon

AdamBrunt said:

Dazed_and_C0nfused said:

Phone, letter, webchat.

Just make it clear which year the contributions were paid in and what you expect to pay in the current tax year.

All assuming you are referring to "relief at source" contributions

We are talking about a work pension scheme where the pension company have already claimed the basic rate tax relief (and added it to the pension contributions, if you know what I mean) and I am now just claiming the additional 20% relief.
I wonder if filling out an SA100 tax return form would achieve the same result ?

That's relief at source. SA100 would certainly be one way to do it, in addition to those already suggested above, but as you've said you don't do self assessment, why start now?

LHW99

This link talks about how to claim

https://www.unbiased.co.uk/life/pensions-retirement/how-to-claim-higher-rate-tax-relief-on-pension-contributions

Albermarle

Normally once you make a claim and they have paid a rebate ,  HMRC adjust your taxcode ( make it larger ) so you pay less tax during the year and no need for another  rebate later. They assume your contributions stay the same from one year to the next .
If your contributions change , you can go to your personal tax account with HMRC ( easy to register ) and make an online request for a new tax code , giving the reason ( increased/decreased contributions). Normally it works well.

sheslookinhot

I sent them a letter claiming additional tax relief and stated I will make no further contributions this tax year. Although I may, but need to be careful that I don’t leave myself paying higher tax on drawdown.

I have had no response yet, as only sent in the letter on Tuesday.

AdamBrunt

Albermarle said:

Normally once you make a claim and they have paid a rebate ,  HMRC adjust your taxcode ( make it larger ) so you pay less tax during the year and no need for another  rebate later. They assume your contributions stay the same from one year to the next .
If your contributions change , you can go to your personal tax account with HMRC ( easy to register ) and make an online request for a new tax code , giving the reason ( increased/decreased contributions). Normally it works well.

Thanks.
Will double check but I am pretty sure my tax code has gone DOWN recently (after I last claimed for the additional tax relief) which doesn't seem right ?

IAMIAM

Do they actually send you a cheque if you want your tax code to remain as is? 
I am presuming if you fill in a SA100 the tax year AFTER you have paid into the pension, then this could be a yes? ie put a lump sum in, in say March 2021 and fill in a SA100 in April 2021 for 2020/21

Dazed_and_C0nfused

IAMIAM said:

Do they actually send you a cheque if you want your tax code to remain as is? 
I am presuming if you fill in a SA100 the tax year AFTER you have paid into the pension, then this could be a yes? ie put a lump sum in, in say March 2021 and fill in a SA100 in April 2021 for 2020/21

You don't get a cheque specifically in respect of any additional pension tax relief due.

It simply forms part of your Self Assessment calculation and the end result of that can be repaid however I think it would be relatively unusual to get a cheque as HMRC ask for bank account details if you claim the refund on the return so it would be transferred into your nominated bank account.

As previously mentioned HMRC assume similar contributions will be made in subsequent years so after filing the 2020:21 return you could expect an updated tax code for 2021:22.  That is not allowing any tax relief for 2020:21 but allowing some provisional relief for 2021:22.