Higher Rate Tax Relief Question - Employer and SIPP pensions

interbear

Hi all,

I currently contribute to two pensions:

• Employer Pension - monthly contribution into Aviva pension (employer 5%, me 4% of pensionable salary which is then increased via basic rate tax relief)
• SIPP Pension - I consolidated some old pension pots into a single SIPP via an IFA. Into this I contribute the balance between my employer pension contributions and the annual allowance (£40k) when I am able to. 

My question is on tax relief. For the SIPP pension I include my gross contributions on my HMRC tax return each year, to claim higher rate tax relief. But I have never done this for my employer pension. Can I? Should I? My previous employers pension was a salary sacrifice type so I was told not to claim higher rate tax relief. But my current employer (last 4 years) is not salary sacrifice, just a simple DC pension contribution each month. I know I get basic rate tax relief on it but it struck me that I may be missing out on higher rate relief. And if so, am I right in saying I could claim it for the previous 3 tax years on my next tax return?

Any advice appreciated. 

Dazed_and_C0nfused

You can never claim any tax relief for salary sacrifice contributions as you aren't paying them, your employer is.

Are the contributions you make to Aviva paid using the relief at source method or net pay?

cloud_dog

@interbear, is your workplace pension a 'net pay' (taken before tax) or a 'relief at source' scheme?

If net pay, there is no further tax relief to claim.  And you can inly claim missing HRT relief on what is left above your HRT threshold (minus your existing workplace contributions).

interbear

Thanks. I’m aware that there is no additional tax relief on salary sacrifice arrangements. 

Not actually sure whether the current employer pension is “net pay” or “relief at source”, I’ll check that out. I suspect the latter. 

Dazed_and_C0nfused

Relief at source is where the pension company adds 25% (courtesy of HMRC).

Net pay is where your contribution reduces your taxable pay and nothing extra is added by the pension company.

interbear

So my employer has confirmed that the pension is a "relief at source" scheme, which makes sense as I can see that Aviva add basic rate relief to my personal pension pot contributions. 

Which means I can indeed claim higher rate relief on those personal contributions, I think, back to 3 years.

Dazed_and_C0nfused

As you have submitted incorrect Self Assessment returns there is a specific process you must follow.

2021:22 - just complete your return correctly

2020:21 - file an amended return

2018:19 & 2019:20 - you need to make a claim for overpayment relief

See the Write to HMRC section here,

https://www.gov.uk/self-assessment-tax-returns/corrections

interbear

Dazed_and_C0nfused said:

As you have submitted incorrect Self Assessment returns there is a specific process you must follow.

2021:22 - just complete your return correctly

2020:21 - file an amended return

2018:19 & 2019:20 - you need to make a claim for overpayment relief

See the Write to HMRC section here,

https://www.gov.uk/self-assessment-tax-returns/corrections

You are correct, thank you.

I'm getting confused with the ability to use the annual pension contribution allowance from previous years.

Dazed_and_C0nfused

interbear said:

Dazed_and_C0nfused said:

As you have submitted incorrect Self Assessment returns there is a specific process you must follow.

2021:22 - just complete your return correctly

2020:21 - file an amended return

2018:19 & 2019:20 - you need to make a claim for overpayment relief

See the Write to HMRC section here,

https://www.gov.uk/self-assessment-tax-returns/corrections

You are correct, thank you.

I'm getting confused with the ability to use the annual pension contribution allowance from previous years.

You can only ever claim tax relief for the tax year a contribution was paid in.

So if you have paid more in say 2021:22 by using carry forward of unused annual allowance that has no impact on any earlier year, the contribution, which was made in 2021:22, would go on your 2021:22 tax return (assuming it was a relief at source contribution).