Teachers Pension

IAMIAM

Hi,
I’ve decided to pay for Additional Pension in £250 tranches each time via lump sum (bank transfer to TPS) which costs me approx £2.2k BEFORE TAX for each £250. 

Is it better to buy it just before the end of a tax year, so I can get tax back quickly or does it not make a difference? I presume HMRC accept receipts from TPS as confirmation that I have paid into a pension with no tax deducted at source?

Is this done electronically? - or do they require the paper receipts when using online self assessment forms?

Will they send a cheque or keep changing my tax code?

hugheskevi

You can contact HMRC and ask them to adjust your tax code for 2022/23 to apply the relief due, which you can anytime - even many months before you make your contribution. For a Tax Code adjustment nothing at all should be needed by way of evidence.

If you do self-assessment then no evidence is requested, although HMRC can always review and request what they like. The relief due would be paid by bank transfer, not a Tax Code adjustment

For claiming after end of year you are likely to have to send in a P60 and some evidence of the contribution. The relief due would be paid by bank transfer, not a Tax Code adjustment

Dazed_and_C0nfused

Do you already complete a Self Assessment return each year?

Contributing £2,200 to a pension in itself isn't a reason to need to complete a return.  But it would be relevant if you already complete one for some other reason.

IAMIAM

How do I ask for a tax code adjustment in advance for paying the 2200? Online? 

Dazed_and_C0nfused

Not sure you can do it online.

To be perfectly honest I think you will find the tax code adjustment more difficult than you might think.  For two reasons,

1.  HMRC don't normally allow tax code adjustments in relation to something which you might decide to pay

2.  HMRC have a very very poor reputation when it comes to allowing tax relief for this type of pension contribution.  It could easily (and this isn't a joke) take you until the end of the tax year to actually get it sorted even if you make the payment now.

And even if you do make a provisional claim you will still have to include the details in your Self Assessment return in due course.  If you don't you will just end up paying all the provisional relief back to HMRC.

OldBeanz

Why are you thinking of contributing this way? If you contribute through your salary then you do not need to worry about the tax man. If you purchase over a number of years then you lock in the inflation from day 1 which at present is spinning out of control. The other consideration is your birthday when the cost increases.

xylophone

 HMRC have a very very poor reputation when it comes to allowing tax relief for this type of pension contribution.  It could easily (and this isn't a joke) take you until the end of the tax year to actually get it sorted even if you make the payment now.

https://forums.moneysavingexpert.com/discussion/6345808/csp-lump-sum-pension-purchase

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye93090