Pensions - Higher Rate Tax Relief Claim Non Self Assessment

Smailsy

Hi, newbie here!

I have been looking into the process for claiming the higher rate tax relief on my pension.  I have seen a few posts that discuss this but more related to those doing a self assessment, which I don’t do.

For those not on self assessment tax returns, I believe you need to write to HMRC with your request, however I haven’t been able to find much information or a template as an example of what information I would need to send to HMRC.

Does anyone have any details or an example template of what to send HMRC fo this?

Thanks in advance!

Marcon

You can do it online: https://www.gov.uk/check-income-tax-current-year

Have you asked if your employer will permit contributions via salary sacrifice? That way you'd get tax relief immediately (because you aren't taxed on the amount of salary you sacrifice) and save on NI.

Dazed_and_C0nfused

Smailsy said:

Hi, newbie here!

I have been looking into the process for claiming the higher rate tax relief on my pension.  I have seen a few posts that discuss this but more related to those doing a self assessment, which I don’t do.

For those not on self assessment tax returns, I believe you need to write to HMRC with your request, however I haven’t been able to find much information or a template as an example of what information I would need to send to HMRC.

Does anyone have any details or an example template of what to send HMRC fo this?

Thanks in advance!

Which tax years are you wanting to claim for?

And is this in respect of "relief at source" contributions you have made to a personal pension, SIPP or auto enrollment scheme?

sheslookinhot

Your pension provider should normally help with a template for claiming back HR tax relief.

Marcon

sheslookinhot said:

Your pension provider should normally help with a template for claiming back HR tax relief.

HL has a nice simple one: https://www.hl.co.uk/help/sipp,-drawdown-and-annuity/sipp/tax-relief/how-do-i-claim-higher-rate-tax-relief

Just follow the links and download their template.

Smailsy

Marcon said:

sheslookinhot said:

Your pension provider should normally help with a template for claiming back HR tax relief.

HL has a nice simple one

Just follow the links and download their template.

Thanks this is what I was looking for!  One question however, if I want to claim back the last 4 years, would I simply include the total for 4 years as the gross annual pension contributions, or do I just provide my last full years contributions?  Or provide the gross contributions for each year listed separately as income and contributions have adjusted slightly over the years?

sheslookinhot

Provide gross contribution for each year starting from furthest out tax year.

Dazed_and_C0nfused

Smailsy said:

Marcon said:

sheslookinhot said:

Your pension provider should normally help with a template for claiming back HR tax relief.

HL has a nice simple one

Just follow the links and download their template.

Thanks this is what I was looking for!  One question however, if I want to claim back the last 4 years, would I simply include the total for 4 years as the gross annual pension contributions, or do I just provide my last full years contributions?  Or provide the gross contributions for each year listed separately as income and contributions have adjusted slightly over the years?

You can only ever get tax relief for the tax year you made the contribution in so must provide HMRC with individual amounts for each tax year not a global figure.

HMRC will then review your tax position for each year and any relief due for any of the tax years to 5 April 2021 will be paid direct to you.

Any relief due for the current tax year will be provisionally dealt with via a tax code adjustment meaning you will pay less tax each pay day between when the new tax code is issued and the end of the current tax year.

Smailsy

Thanks all, and just for clarity, when adding the gross contribution, this is the total amount - what I pay plus the 20% tax relief the government has already paid?

Dazed_and_C0nfused

Sort of, with relief at source contributions (which we're presuming these are) it's what you pay plus 25%.  Which is 20% of the gross contribution.

For example you pay £1000.  The pension company, courtesy of HMRC, add £250 making a gross contribution of £1,250.

£1,250 x 20% = £250.

jamesd

It's whatever arrives in the pension. That could be no addition (salary sacrifice or gross pay types, or employer contribution) or 25% added (relief at source). The pension scheme should report online somewhere the total gross for the year and that total gross, with or without tax relief increase, is the one to use.