Vanguard Tax Yr contribution question

anonmoose

I have just looked at my contribution summary for my pension for this tax year and it says I have contributed about £50 more than I think I have contributed.  I am self employed with variable income so need to keep a close eye on what I am contributing each month so to not go over my net income for the year.  

I will go through my bank statements again after work to double check but has anyone else ever had this issue?  It is tricky figuring out what it could be as I have lots of hmrc contributions from the previous year coming in which shouldn't be included.  There is also an extra contribution when vanguard said there was a delay in processing my transaction so I got a small additional amount but that doesn't come to £50.  I am very confused as the amount doesn't seem to add up to what the transaction section says has gone in. 

Its a small amount so its no big deal at the moment but like I say I don't want to be caught out at the end of the tax yr contributing more than I should.  Has anyone got any ideas why it's not adding up to what I think I have paid in?  Also should that additional amount that vanguard added because of admin delay be added to my contribution or will I not get tax relief on that bit?

Dazed_and_C0nfused

Assuming you are making relief at source contributions then it's when you make your contribution that counts. 

For example if you pay £100 on 15 March 2022 and the £25 tax relief is added by Vanguard on 15 April 2022 that would be £125 paid in 2021:22 and £0 in 2022:23.

dunstonh

 It is tricky figuring out what it could be as I have lots of hmrc contributions from the previous year coming in which shouldn't be included.  

It should be pretty easy when you look at the transaction history on the platform.   Unless Vanguard has restricted access to that function.

Are you looking at the net contribution or the gross contribution?    Vanguard do not pre-refund the tax relief like traditional providers.  So, there is a lag of up to 2 months for tax relief to be added.  So, your February and March net payments may not receive their tax relief until the new tax year.  That doesn't matter though as HMRC go by the gross contribution. Not the net contribution.   

anonmoose

The transaction history shows my payments going in and the hrmc contribution going in but doesn't state what is relief or my contribution so it's all just money going in and not saying from where.

But when I add up my contribution it doesn't add up to what they are saying I have contributed.

I think it might be because of this extra vanguard put in because of the admin error they made and therefore me losing out on the buy price. But even then the extra they compensated was something like 65 not 50.

I think I will email them when I have double checked the figures this evening.

Linton

Cant you get your payments from your bank statement?  If you can, simply multiply those by 5/4 to get the gross contribution. "Contribution" always means gross contribution.

anonmoose

Yes I will do that Linton, it would just be good to know why they are saying my contribution is higher than it is. 

I suspect it is about this compensation payment. But that is unfair to add that to my contribution.

As say for example my £800 would buy 4 units at the date it should have gone out. On the day they actually processed it it only bought say 3 units so they have bought me another unit to compensate for their admin delay. Say that extra unit cost £200 then that's not my fault and that extra money shouldn't be added to my contribution as I am trying to maximise how much I can add each tax year. 

So if it was fair that extra unit wouldn't add to my contribution as I only put £800 in and not £1000. But I think they have added it as if I paid in the extra!

Obviously the units and price are not as I have said I am just trying to simplify to explain what I mean.

anonmoose

Sorry to add I understand about the gross and net contribution and its not anything to do with that. I am specifically talking about my contribution prior to getting the relief added. I think it can only be about this compensation for the admin error.

dunstonh

The transaction history shows my payments going in and the hrmc contribution going in but doesn't state what is relief or my contribution so it's all just money going in and not saying from where.

Tell us the net amount you have paid (i.e. the direct debit/payment amount) 
Tell us the tax relief you have received (its probably a month or two behind)
Tell us the gross amount you think you have paid in.

We need figures to help work it out.

anonmoose

Thanks Dunston much appreciated. I will post it later today when I can get on my computer.

anonmoose

Mystery solved.  It was a card payment from my other account into cash to pay my fees that I had forgotten about.   It doesn't show on the transaction history on my vanguard profile as it was into cash so that's why the figures didn't tally. 

If I set up for direct debit for fees I assume it still goes down as personal contribution?  They do give the option of selling down funds but I didn't want to do that.  As you can tell I am trying to max out every penny I can!

Thanks as always for taking the time to read and respond it is very much appreciated.  

Dazed_and_C0nfused

If you have contributed to your pension then that should be counted.  Keeping it in cash (to pay fees) shouldn't change that.  

Did you get 25% of the amount you paid added for the tax relief?

You wouldn't count compensation paid by Vanguard.