Claiming tax relief - higher rate 3 March at 10:55PM edited 3 March at 10:56PM in Pensions, annuities & retirement planning 4 replies 220 views

DietIrnBru

In tax year 2021 - 2022 and again in the current ta x year, due to overtime at work and doing agency work, I have tipped into the higher income tax bracket - not by much but enough to end up owing around £300 for tax year 2021-2022. This has been reclaimed by HMRC over the current tax year via an alteration of my tax code.

My question is am I able to regain some of this with claiming the higher rate tax relief on my pension? I am currently enrolled in the NHS pension which deducts from my monthly wage. I am also enrolled in the pension provided by the agency I work for. In both jobs I am taxed at the basic and intermediate rates (based in Scotland).

Could anyone advise of the procedure to reclaim this tax relief? If it is applicable that is. The thought of spending a lengthy period of time on the hmrc helpline is not appealing - and the labrynith that is their website - hsa proven far from useful.. If I am entitled to the relief - is it paid directly to one of my pensions?

Thanks in advance.

Dazed_and_C0nfused

It's almost certain that there is nothing you can do now for 2021:22.

The NHS scheme is "net pay" so you automatically receive the maximum possible tax saving each payday.

With the pension with the agency job, what method was used to get money into it?

The normal methods are,

Net pay

Relief at source

Salary sacrifice 

Qyburn

DietIrnBru said:

In tax year 2021 - 2022 and again in the current ta x year, due to overtime at work and doing agency work, I have tipped into the higher income tax bracket - not by much but enough to end up owing around £300 for tax year 2021-2022. This has been reclaimed by HMRC over the current tax year via an alteration of my tax code.

My question is am I able to regain some of this with claiming the higher rate tax relief on my pension? I am currently enrolled in the NHS pension which deducts from my monthly wage. I am also enrolled in the pension provided by the agency I work for. In both jobs I am taxed at the basic and intermediate rates (based in Scotland).

Could anyone advise of the procedure to reclaim this tax relief? If it is applicable that is. The thought of spending a lengthy period of time on the hmrc helpline is not appealing - and the labrynith that is their website - hsa proven far from useful.. If I am entitled to the relief - is it paid directly to one of my pensions?

Thanks in advance.

You should be able to submit a tax return for 22/23. If you have two jobs and the total is pushing you into higher rate from time to time it's very unlikely that PAYE will get it right but it's more likely to be too little rather than too much tax.

For the last year, it seems HMRC reckon you under paid by £300. Why do you think that's incorrect, is ther something they didn't account for? There are various options for reviewing past years, I've not used these as I always need to do a return.
https://www.gov.uk/claim-tax-refund

DietIrnBru

Thankyou for the replies above to my query.

My pension contributions are net in both my agency work and my main NHS job. Essentially I have a substantive post - but also do bank/agency nurse shifts alongside this. It is the collective income of all four posts that have tipped me into the higher tax band - leaving me owing the £300 as my posts are taxed at either 20% or 21%. HMRC have altered the tax code for my main job to get back the short fall that emerged.

I made a cumulative total wage of 45409 - so 1746 is liable for the 41% tax rate in scotland - given I was being taxed at 20/21% - this meant I have underpaid by around £350.

Am I able to claim some sort of higher rate pension relief? I dont do self assessments.

Dazed_and_C0nfused

DietIrnBru said:

Thankyou for the replies above to my query.

My pension contributions are net in both my agency work and my main NHS job. Essentially I have a substantive post - but also do bank/agency nurse shifts alongside this. It is the collective income of all four posts that have tipped me into the higher tax band - leaving me owing the £300 as my posts are taxed at either 20% or 21%. HMRC have altered the tax code for my main job to get back the short fall that emerged.

I made a cumulative total wage of 45409 - so 1746 is liable for the 41% tax rate in scotland - given I was being taxed at 20/21% - this meant I have underpaid by around £350.

Am I able to claim some sort of higher rate pension relief? I dont do self assessments.

The beauty of net pay contributions are tha you receive the maximum possible tax relief each payday.

There is nothing to claim from HMRC and you don't need to do anything, you get the maximum tax savings just by the contribution reducing your taxable income.

You could make separate contributions to a personal pension or SIPP to further reduce your liability you will be higher rate again this tax year but there is nothing you can do to change what's happened in 2021:22.