Self Assesment - Employed Tax Deducted Query

tunde10

I'm trying to complete a self assessment as i have overpaid tax and ideally want the refund asap.

I received a significant payrise in Jan-23 which put me well into the 40% bracket. However i doubled my pension contributions from employers scheme to keep me under the 40% bracket for 2022-23 tax years. However all 3 months of pay during the year, i have been charged 40% tax without taking into account increase in pension. I was told this was normal & do register for self assessment.

My question is on filling out the self assessment today, i have a query in the income section on the box which asks about 'UK tax taken off 'Employee Name' pay:'

I first put just Income Tax deducted excluding N.! and Pension and it worked out at the end i would owe them money which is wrong.
Then i went back and put all 3 deductions (Income Tax, Pension & N.I) and it showed me a massive repayment due which i also know is also incorrect.

Can someone clarify what item i should include in this box. It is not clear and there is no other section to input N.I or Employee's pension payments.

Also is the final calculations shown before submitting what they stick to or do they have other workings in the background which takes into account any N.I & Pension paid from employer scheme? Just checking so i don't need to worry if the final numbers are way off. 


Thanks

Jeremy535897

You only enter the tax deducted, not the NI. Have you entered the gross equivalent of all the contributions you have made to your pension scheme?

tunde10

Jeremy535897 said:

You only enter the tax deducted, not the NI. Have you entered the gross equivalent of all the contributions you have made to your pension scheme?

Thanks, for the income, i just entered gross of everything before any pension or Tax was deducted. So basically my full income. Is this incorrect?

Dazed_and_C0nfused

What method do you use to make the pension contributions?

Net pay

Relief at source

Salary sacrifice

There is very rarely any need to complete a tax return just to claim tax relief on pension contributions.  And completing one won't guarantee a quicker refund.

[Deleted User]

I honestly think, in this case, the op should wait for the P60 to be certain that the correct figure is entered. 

tunde10

Dazed_and_C0nfused said:

What method do you use to make the pension contributions?

Net pay

Relief at source

Salary sacrifice

There is very rarely any need to complete a tax return just to claim tax relief on pension contributions.  And completing one won't guarantee a quicker refund.

The pension is deducted by my employer from my gross pay before taxes. So i assume relief at source.
Okay, so in your experience, how long would i have to wait for refund without a self assessment?

My other worry is if i keep getting overtaxed for this financial year, it has a knock on effect on how much N.! i am charged too which can't be reclaimed. 

[Deleted User] said:

I honestly think, in this case, the op should wait for the P60 to be certain that the correct figure is entered. 

My final payslip from end of last month has the full breakdown of income and all deductions from financial year to date. It wont differ from the P60. It a straightforward continuous employment, all that changed was a pay rise in Jan-23 & increase in pension contributions.

Dazed_and_C0nfused

The pension is deducted by my employer from my gross pay before taxes. So i assume relief at source.

You honestly need to be certain of this as you won't get any refund without knowing.

It sounds like net pay.  This is where your salary is say £60,000 and if you pay 10% in net pay pension contributions your taxable pay (which goes on your P60) would be £54,000.  And there is absolutely nothing for you to claim pension tax relief wise.

Relief at source is where the money is added to a pension pot and the pension provider adds 25%.  So you contribute say £400 and they add £100 in basic rate tax relief to make a gross contribution of £500.  Using the example above your taxable pay would be £60,000 not £54,000.

[Deleted User]

tunde10 said:

Dazed_and_C0nfused said:

What method do you use to make the pension contributions?

Net pay

Relief at source

Salary sacrifice

There is very rarely any need to complete a tax return just to claim tax relief on pension contributions.  And completing one won't guarantee a quicker refund.

The pension is deducted by my employer from my gross pay before taxes. So i assume relief at source.
Okay, so in your experience, how long would i have to wait for refund without a self assessment?

My other worry is if i keep getting overtaxed for this financial year, it has a knock on effect on how much N.! i am charged too which can't be reclaimed. 

[Deleted User] said:

I honestly think, in this case, the op should wait for the P60 to be certain that the correct figure is entered. 

My final payslip from end of last month has the full breakdown of income and all deductions from financial year to date. It wont differ from the P60. It a straightforward continuous employment, all that changed was a pay rise in Jan-23 & increase in pension contributions.

The gross pay on the final payslip can be markedly different from the P60 figure as Dazed has outlined. The ‘taxable pay to date’ should be identical to the P60 however. 

A relative of mine entered the ‘gross pay’ figure for seven years. He was in the NHS pension scheme and should obviously have included the ‘ taxable pay to date’. He could only go back four years!

tunde10

Dazed_and_C0nfused said:

The pension is deducted by my employer from my gross pay before taxes. So i assume relief at source.

You honestly need to be certain of this as you won't get any refund without knowing.

It sounds like net pay.  This is where your salary is say £60,000 and if you pay 10% in net pay pension contributions your taxable pay (which goes on your P60) would be £54,000.  And there is absolutely nothing for you to claim pension tax relief wise.

Relief at source is where the money is added to a pension pot and the pension provider adds 25%.  So you contribute say £400 and they add £100 in basic rate tax relief to make a gross contribution of £500.  Using the example above your taxable pay would be £60,000 not £54,000.

Thanks, by that example. It is Net pay as although I only pay 8% of my 10% contributions with HMRC adding the 2%. But I 

In that case, my Taxable pay will be below the 40% tax bracket but I was charged 40% tax for the 3 months. Hence my overpayment and the need for self assessment.... 

I have already checked the numbers out online & I did overpay. I will just wait for P60. 

Dazed_and_C0nfused

Sorry but you are very confused.

Net pay means no tax relief is added.  You only ever get pension tax relief with relief at source contributions.

Were you a non cumulative tax code?

If not I cannot see how any tax refund could be due.

tunde10

Erm i already told you it was relief at source then but said it sounded like net pay.

I have re-read the definition and it is definitely relief at source.

Anyway this port of the convo is irrelevant. I know how much Tax i paid through employment and how much pension paid & relief received. That was not the question. I know it was overpaid.

My query was specifically on the self assessment tax section which has been answered already. 

Thanks