Reclaiming tax on a SIPP

Tom_Bradbury

Hi

As a 40% tax payer,  can I recover the 20% tax on a SIPP back from HMRC without the need for filling in a self-assessment tax return and do it via my tax code?  I am employed so I am covered by PAYE, and for my bank interest earnings, I pay the tax over the savings threshold via my tax code.  Just trying to keep things simple.

Dazed_and_C0nfused

Tom_Bradbury said:

Hi

As a 40% tax payer,  can I recover the 20% tax on a SIPP back from HMRC without the need for filling in a self-assessment tax return and do it via my tax code?  I am employed so I am covered by PAYE, and for my bank interest earnings, I pay the tax over the savings threshold via my tax code.  Just trying to keep things simple.

It isn't necessarily an extra 20%, the exact amount depends on your overall tax position.

For example you might have contributed say £5k gross but only be liable to 40% tax on £500.

But yes, if no other Self Assessment criteria exists then there would normally be no need to complete a tax return just because of claiming tax relief on pension contributions.

You have missed the boat though as far as getting tax relief through your tax code for the current tax year.  Any refund due will be paid direct to you by HMRC later this year (assuming you provide them with details of the RAS pension contributions).

https://www.gov.uk/tax-overpayments-and-underpayments

HMRC will usually then amend your 2023:24 tax code on the assumption you will make similar contributions in the next tax year.  So if you know you'll be paying a different (gross) amount then you should let them know when supplying details of the actual amounts paid for 2022:23.

dunstonh

As a 40% tax payer,  can I recover the 20% tax on a SIPP back from HMRC without the need for filling in a self-assessment tax return and do it via my tax code? 

Providing you have no other triggers for a self assessment form, then yes, you can just notify them of your gross and net pension contributions.