Does this payslip look ok?

Da_Crojanz

Just to add. I've been with the employer for 4 years now, though salary only went onto the higher rate tax band last August. Prior to that would i not have been eligible for any tax relief? I have checked all my statements but as they changed pension provider last Autumn I don't have anything from before that (though I'll be able to dig it out I hope).

[Deleted User]

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

Thanks for all the responses. Can I make the call that the issue appears to be down to the RAS pension type but that I’m not getting higher rate tax relief? Would my next steps then be..

- confirm pension type with provider and query why I’m not getting tax relief at higher rate

- have the tax relief implemented and backdated (do I do this through HMRC / work / my pension provider)

You never get higher rate relief through the pension provider. They don't know your tax rate, they will always claim basic rate relief for RAS contributions. Check your statements, or online pension account transactions, and you should see them claiming £39.96 a month tax relief, that will confirm for certain that it's a RAS scheme. But as above it takes a couple of months so may not be there yet if you've just joined. Or check any pension booklet/info provided about the pension.

You need to tell HMRC that you're paying into a RAS scheme and they should adjust your tax code to give higher rate relief. If your salary or contribution level changes you'll need to let them know so they can adjust it.

Hi again - I just checked the account and can confirm that monthly there is about £38 - £39 tax relief. I imagine this has been the case since about last July when my salary went up. Can I add up the amount and claim back from HMRC or is it only possible to get it back form now? Also, can I claim the whole amount of the £39 each month?

Sorry for all the questions and thanks to all who replied. Has been really helpful, certainly way beyond the shoulder shrugging I'd get form the HR dept!

I think that you are getting confused with the whole process. 

Your pension provider will claim basic rate tax relief from HMRC and add it to your contributions. This has nothing to do with your employer. 

If you are entitled to claim higher rate relief on your contributions it is you who must inform HMRC that you are paying into a pension plan. You inform them of the amounts paid and from when you contributed. HMRC will pay resultant tax overpayment to you for earlier tax years and will adjust your PAYE code for the current year to attempt to avoid you having to make further post tax year claims in the future. Again, this is nothing to do with your employer, nor indeed your pension provider.

Da_Crojanz

[Deleted User] said:

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

Thanks for all the responses. Can I make the call that the issue appears to be down to the RAS pension type but that I’m not getting higher rate tax relief? Would my next steps then be..

- confirm pension type with provider and query why I’m not getting tax relief at higher rate

- have the tax relief implemented and backdated (do I do this through HMRC / work / my pension provider)

You never get higher rate relief through the pension provider. They don't know your tax rate, they will always claim basic rate relief for RAS contributions. Check your statements, or online pension account transactions, and you should see them claiming £39.96 a month tax relief, that will confirm for certain that it's a RAS scheme. But as above it takes a couple of months so may not be there yet if you've just joined. Or check any pension booklet/info provided about the pension.

You need to tell HMRC that you're paying into a RAS scheme and they should adjust your tax code to give higher rate relief. If your salary or contribution level changes you'll need to let them know so they can adjust it.

Hi again - I just checked the account and can confirm that monthly there is about £38 - £39 tax relief. I imagine this has been the case since about last July when my salary went up. Can I add up the amount and claim back from HMRC or is it only possible to get it back form now? Also, can I claim the whole amount of the £39 each month?

Sorry for all the questions and thanks to all who replied. Has been really helpful, certainly way beyond the shoulder shrugging I'd get form the HR dept!

I think that you are getting confused with the whole process. 

Your pension provider will claim basic rate tax relief from HMRC and add it to your contributions. This has nothing to do with your employer. 

If you are entitled to claim higher rate relief on your contributions it is you who must inform HMRC that you are paying into a pension plan. You inform them of the amounts paid and from when you contributed. HMRC will pay resultant tax overpayment to you for earlier tax years and will adjust your PAYE code for the current year to attempt to avoid you having to make further post tax year claims in the future. Again, this is nothing to do with your employer, nor indeed your pension provider.

I'm getting really confused by this as different sources are telling me different things.

Can someone please tell me exactly what I need to say to HMRC and what I can expect the outcome to be? I don't understand how they will not know I'm paying into a pension. Appreciate this may technically be nothing to do with employer but if they are using a pension method that members can claim tax back from I'm surprised they have never told us.

Also can someone please clarify what is meant by higher / lower rate and if this means I should be informing them of contributions in previous tax years? I've been with the employer 4 years and as far as I know the pension has been administered this way since day one, but I was on a lower tax band salary until last summer.

zagfles

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

Thanks for all the responses. Can I make the call that the issue appears to be down to the RAS pension type but that I’m not getting higher rate tax relief? Would my next steps then be..

- confirm pension type with provider and query why I’m not getting tax relief at higher rate

- have the tax relief implemented and backdated (do I do this through HMRC / work / my pension provider)

You never get higher rate relief through the pension provider. They don't know your tax rate, they will always claim basic rate relief for RAS contributions. Check your statements, or online pension account transactions, and you should see them claiming £39.96 a month tax relief, that will confirm for certain that it's a RAS scheme. But as above it takes a couple of months so may not be there yet if you've just joined. Or check any pension booklet/info provided about the pension.

You need to tell HMRC that you're paying into a RAS scheme and they should adjust your tax code to give higher rate relief. If your salary or contribution level changes you'll need to let them know so they can adjust it.

Hi again - I just checked the account and can confirm that monthly there is about £38 - £39 tax relief. I imagine this has been the case since about last July when my salary went up. Can I add up the amount and claim back from HMRC or is it only possible to get it back form now? Also, can I claim the whole amount of the £39 each month?

Sorry for all the questions and thanks to all who replied. Has been really helpful, certainly way beyond the shoulder shrugging I'd get form the HR dept!

Easiest way is to ask the pension provider for a tax statement for your contributions in 2022/23 tax year. Or you might be able to generate/download one online. This should show your net and gross contributions in the tax year, then you can contact HMRC, give them the figures, and ask them for a refund for the extra tax relief for last tax year. They will also adjust your tax code on the assumption it will continue at the same rate so you'll get the extra relief from 2023/24 in your pay through a higher tax code. This will be a guess and if your salary/contributions change you'll need to tell them so they can adjust.

You could manually add the amounts up but there are a couple of foibles, tax relief counts when the net payment is made, not when the tax relief gets added usually a couple of months later, and contributions towards the end of the tax year may count in the following year, for instance if you got paid on 31 March the pension contribution might not have gone in till 6 April and so be in the 2023/24 tax year.

So you'd need to look at your pension statements, add all your contributions in the tax year (ie the approx £159 amounts), do not add tax relief or employer contributions. That's your net RAS contribitions. Then divide by 0.8 to get your gross contributions. But it's probably safer to get a tax statement from your pension provider.

See https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Da_Crojanz

zagfles said:

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

Thanks for all the responses. Can I make the call that the issue appears to be down to the RAS pension type but that I’m not getting higher rate tax relief? Would my next steps then be..

- confirm pension type with provider and query why I’m not getting tax relief at higher rate

- have the tax relief implemented and backdated (do I do this through HMRC / work / my pension provider)

You never get higher rate relief through the pension provider. They don't know your tax rate, they will always claim basic rate relief for RAS contributions. Check your statements, or online pension account transactions, and you should see them claiming £39.96 a month tax relief, that will confirm for certain that it's a RAS scheme. But as above it takes a couple of months so may not be there yet if you've just joined. Or check any pension booklet/info provided about the pension.

You need to tell HMRC that you're paying into a RAS scheme and they should adjust your tax code to give higher rate relief. If your salary or contribution level changes you'll need to let them know so they can adjust it.

Hi again - I just checked the account and can confirm that monthly there is about £38 - £39 tax relief. I imagine this has been the case since about last July when my salary went up. Can I add up the amount and claim back from HMRC or is it only possible to get it back form now? Also, can I claim the whole amount of the £39 each month?

Sorry for all the questions and thanks to all who replied. Has been really helpful, certainly way beyond the shoulder shrugging I'd get form the HR dept!

Easiest way is to ask the pension provider for a tax statement for your contributions in 2022/23 tax year. Or you might be able to generate/download one online. This should show your net and gross contributions in the tax year, then you can contact HMRC, give them the figures, and ask them for a refund for the extra tax relief for last tax year. They will also adjust your tax code on the assumption it will continue at the same rate so you'll get the extra relief from 2023/24 in your pay through a higher tax code. This will be a guess and if your salary/contributions change you'll need to tell them so they can adjust.

You could manually add the amounts up but there are a couple of foibles, tax relief counts when the net payment is made, not when the tax relief gets added usually a couple of months later, and contributions towards the end of the tax year may count in the following year, for instance if you got paid on 31 March the pension contribution might not have gone in till 6 April and so be in the 2023/24 tax year.

So you'd need to look at your pension statements, add all your contributions in the tax year (ie the approx £159 amounts), do not add tax relief or employer contributions. That's your net RAS contribitions. Then divide by 0.8 to get your gross contributions. But it's probably safer to get a tax statement from your pension provider.

See https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Excellent thanks a lot, I'll contact them today and ask for a tax statement, then inform HMRC and mention I'm on the same scheme this year. Should that cover it and they will adjust accordingly?

Should i go back as far as 2021 / 2022? My salary was a bit less back then (below the threshold when it goes up to higher tax brackets) so I assume there would be nothing to claim back?

Dazed_and_C0nfused

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

Thanks for all the responses. Can I make the call that the issue appears to be down to the RAS pension type but that I’m not getting higher rate tax relief? Would my next steps then be..

- confirm pension type with provider and query why I’m not getting tax relief at higher rate

- have the tax relief implemented and backdated (do I do this through HMRC / work / my pension provider)

You never get higher rate relief through the pension provider. They don't know your tax rate, they will always claim basic rate relief for RAS contributions. Check your statements, or online pension account transactions, and you should see them claiming £39.96 a month tax relief, that will confirm for certain that it's a RAS scheme. But as above it takes a couple of months so may not be there yet if you've just joined. Or check any pension booklet/info provided about the pension.

You need to tell HMRC that you're paying into a RAS scheme and they should adjust your tax code to give higher rate relief. If your salary or contribution level changes you'll need to let them know so they can adjust it.

Hi again - I just checked the account and can confirm that monthly there is about £38 - £39 tax relief. I imagine this has been the case since about last July when my salary went up. Can I add up the amount and claim back from HMRC or is it only possible to get it back form now? Also, can I claim the whole amount of the £39 each month?

Sorry for all the questions and thanks to all who replied. Has been really helpful, certainly way beyond the shoulder shrugging I'd get form the HR dept!

Easiest way is to ask the pension provider for a tax statement for your contributions in 2022/23 tax year. Or you might be able to generate/download one online. This should show your net and gross contributions in the tax year, then you can contact HMRC, give them the figures, and ask them for a refund for the extra tax relief for last tax year. They will also adjust your tax code on the assumption it will continue at the same rate so you'll get the extra relief from 2023/24 in your pay through a higher tax code. This will be a guess and if your salary/contributions change you'll need to tell them so they can adjust.

You could manually add the amounts up but there are a couple of foibles, tax relief counts when the net payment is made, not when the tax relief gets added usually a couple of months later, and contributions towards the end of the tax year may count in the following year, for instance if you got paid on 31 March the pension contribution might not have gone in till 6 April and so be in the 2023/24 tax year.

So you'd need to look at your pension statements, add all your contributions in the tax year (ie the approx £159 amounts), do not add tax relief or employer contributions. That's your net RAS contribitions. Then divide by 0.8 to get your gross contributions. But it's probably safer to get a tax statement from your pension provider.

See https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Excellent thanks a lot, I'll contact them today and ask for a tax statement, then inform HMRC and mention I'm on the same scheme this year. Should that cover it and they will adjust accordingly?

Should i go back as far as 2021 / 2022? My salary was a bit less back then (below the threshold when it goes up to higher tax brackets) so I assume there would be nothing to claim back?

If you weren't paying higher rate tax then there is nothing to claim.

You would have received the basic rate relief from the pension scheme (courtesy of HMRC) and that's all you would have been entitled to.

zagfles

Dazed_and_C0nfused said:

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

Thanks for all the responses. Can I make the call that the issue appears to be down to the RAS pension type but that I’m not getting higher rate tax relief? Would my next steps then be..

- confirm pension type with provider and query why I’m not getting tax relief at higher rate

- have the tax relief implemented and backdated (do I do this through HMRC / work / my pension provider)

You never get higher rate relief through the pension provider. They don't know your tax rate, they will always claim basic rate relief for RAS contributions. Check your statements, or online pension account transactions, and you should see them claiming £39.96 a month tax relief, that will confirm for certain that it's a RAS scheme. But as above it takes a couple of months so may not be there yet if you've just joined. Or check any pension booklet/info provided about the pension.

You need to tell HMRC that you're paying into a RAS scheme and they should adjust your tax code to give higher rate relief. If your salary or contribution level changes you'll need to let them know so they can adjust it.

Hi again - I just checked the account and can confirm that monthly there is about £38 - £39 tax relief. I imagine this has been the case since about last July when my salary went up. Can I add up the amount and claim back from HMRC or is it only possible to get it back form now? Also, can I claim the whole amount of the £39 each month?

Sorry for all the questions and thanks to all who replied. Has been really helpful, certainly way beyond the shoulder shrugging I'd get form the HR dept!

Easiest way is to ask the pension provider for a tax statement for your contributions in 2022/23 tax year. Or you might be able to generate/download one online. This should show your net and gross contributions in the tax year, then you can contact HMRC, give them the figures, and ask them for a refund for the extra tax relief for last tax year. They will also adjust your tax code on the assumption it will continue at the same rate so you'll get the extra relief from 2023/24 in your pay through a higher tax code. This will be a guess and if your salary/contributions change you'll need to tell them so they can adjust.

You could manually add the amounts up but there are a couple of foibles, tax relief counts when the net payment is made, not when the tax relief gets added usually a couple of months later, and contributions towards the end of the tax year may count in the following year, for instance if you got paid on 31 March the pension contribution might not have gone in till 6 April and so be in the 2023/24 tax year.

So you'd need to look at your pension statements, add all your contributions in the tax year (ie the approx £159 amounts), do not add tax relief or employer contributions. That's your net RAS contribitions. Then divide by 0.8 to get your gross contributions. But it's probably safer to get a tax statement from your pension provider.

See https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Excellent thanks a lot, I'll contact them today and ask for a tax statement, then inform HMRC and mention I'm on the same scheme this year. Should that cover it and they will adjust accordingly?

Should i go back as far as 2021 / 2022? My salary was a bit less back then (below the threshold when it goes up to higher tax brackets) so I assume there would be nothing to claim back?

If you weren't paying higher rate tax then there is nothing to claim.

You would have received the basic rate relief from the pension scheme (courtesy of HMRC) and that's all you would have been entitled to.

There might be a small amount if OP was in the Scottish 21% band, you can get the 1% extra relief. But will be fairly trivial, maybe £20 a year.

Da_Crojanz

zagfles said:

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

Thanks for all the responses. Can I make the call that the issue appears to be down to the RAS pension type but that I’m not getting higher rate tax relief? Would my next steps then be..

- confirm pension type with provider and query why I’m not getting tax relief at higher rate

- have the tax relief implemented and backdated (do I do this through HMRC / work / my pension provider)

You never get higher rate relief through the pension provider. They don't know your tax rate, they will always claim basic rate relief for RAS contributions. Check your statements, or online pension account transactions, and you should see them claiming £39.96 a month tax relief, that will confirm for certain that it's a RAS scheme. But as above it takes a couple of months so may not be there yet if you've just joined. Or check any pension booklet/info provided about the pension.

You need to tell HMRC that you're paying into a RAS scheme and they should adjust your tax code to give higher rate relief. If your salary or contribution level changes you'll need to let them know so they can adjust it.

Hi again - I just checked the account and can confirm that monthly there is about £38 - £39 tax relief. I imagine this has been the case since about last July when my salary went up. Can I add up the amount and claim back from HMRC or is it only possible to get it back form now? Also, can I claim the whole amount of the £39 each month?

Sorry for all the questions and thanks to all who replied. Has been really helpful, certainly way beyond the shoulder shrugging I'd get form the HR dept!

Easiest way is to ask the pension provider for a tax statement for your contributions in 2022/23 tax year. Or you might be able to generate/download one online. This should show your net and gross contributions in the tax year, then you can contact HMRC, give them the figures, and ask them for a refund for the extra tax relief for last tax year. They will also adjust your tax code on the assumption it will continue at the same rate so you'll get the extra relief from 2023/24 in your pay through a higher tax code. This will be a guess and if your salary/contributions change you'll need to tell them so they can adjust.

You could manually add the amounts up but there are a couple of foibles, tax relief counts when the net payment is made, not when the tax relief gets added usually a couple of months later, and contributions towards the end of the tax year may count in the following year, for instance if you got paid on 31 March the pension contribution might not have gone in till 6 April and so be in the 2023/24 tax year.

So you'd need to look at your pension statements, add all your contributions in the tax year (ie the approx £159 amounts), do not add tax relief or employer contributions. That's your net RAS contribitions. Then divide by 0.8 to get your gross contributions. But it's probably safer to get a tax statement from your pension provider.

See https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Just to confirm - simply adding up the £39 tax relief increments on the statement and telling them the amount won't work? 

zagfles

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

Thanks for all the responses. Can I make the call that the issue appears to be down to the RAS pension type but that I’m not getting higher rate tax relief? Would my next steps then be..

- confirm pension type with provider and query why I’m not getting tax relief at higher rate

- have the tax relief implemented and backdated (do I do this through HMRC / work / my pension provider)

You never get higher rate relief through the pension provider. They don't know your tax rate, they will always claim basic rate relief for RAS contributions. Check your statements, or online pension account transactions, and you should see them claiming £39.96 a month tax relief, that will confirm for certain that it's a RAS scheme. But as above it takes a couple of months so may not be there yet if you've just joined. Or check any pension booklet/info provided about the pension.

You need to tell HMRC that you're paying into a RAS scheme and they should adjust your tax code to give higher rate relief. If your salary or contribution level changes you'll need to let them know so they can adjust it.

Hi again - I just checked the account and can confirm that monthly there is about £38 - £39 tax relief. I imagine this has been the case since about last July when my salary went up. Can I add up the amount and claim back from HMRC or is it only possible to get it back form now? Also, can I claim the whole amount of the £39 each month?

Sorry for all the questions and thanks to all who replied. Has been really helpful, certainly way beyond the shoulder shrugging I'd get form the HR dept!

Easiest way is to ask the pension provider for a tax statement for your contributions in 2022/23 tax year. Or you might be able to generate/download one online. This should show your net and gross contributions in the tax year, then you can contact HMRC, give them the figures, and ask them for a refund for the extra tax relief for last tax year. They will also adjust your tax code on the assumption it will continue at the same rate so you'll get the extra relief from 2023/24 in your pay through a higher tax code. This will be a guess and if your salary/contributions change you'll need to tell them so they can adjust.

You could manually add the amounts up but there are a couple of foibles, tax relief counts when the net payment is made, not when the tax relief gets added usually a couple of months later, and contributions towards the end of the tax year may count in the following year, for instance if you got paid on 31 March the pension contribution might not have gone in till 6 April and so be in the 2023/24 tax year.

So you'd need to look at your pension statements, add all your contributions in the tax year (ie the approx £159 amounts), do not add tax relief or employer contributions. That's your net RAS contribitions. Then divide by 0.8 to get your gross contributions. But it's probably safer to get a tax statement from your pension provider.

See https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Just to confirm - simply adding up the £39 tax relief increments on the statement and telling them the amount won't work? 

No. That's the tax relief you've already had. You're claiming further tax relief because your marginal tax rate was more than 20%. Plus as above tax relief counts when the net payment is made not when the tax relief actually goes in.

Get a tax statement from the pension provider for the 2022/23 tax year, then contact HMRC, they'll want to know the gross contribution figure (your contribitions, do not include employer contributions). You need an employee contributions statement, NOT an annual allowance/pension input amount statement as this will include employer contributions.

The statement should show net and gross contributions where gross = net/0.8. The gross should be around 5% of your salary as that's your contribution rate.

When you phone HMRC make it crystal clear this was a RAS scheme where contributions are deducted after tax. You can prove that with the pension statement. Sometimes HMRC will fob you off with "you can't deduct workplace pension contributions" and usually this is true as they are usually deducted before tax, but this is not true for pensions that use RAS like yours.

[Deleted User]

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

zagfles said:

Da_Crojanz said:

Thanks for all the responses. Can I make the call that the issue appears to be down to the RAS pension type but that I’m not getting higher rate tax relief? Would my next steps then be..

- confirm pension type with provider and query why I’m not getting tax relief at higher rate

- have the tax relief implemented and backdated (do I do this through HMRC / work / my pension provider)

You never get higher rate relief through the pension provider. They don't know your tax rate, they will always claim basic rate relief for RAS contributions. Check your statements, or online pension account transactions, and you should see them claiming £39.96 a month tax relief, that will confirm for certain that it's a RAS scheme. But as above it takes a couple of months so may not be there yet if you've just joined. Or check any pension booklet/info provided about the pension.

You need to tell HMRC that you're paying into a RAS scheme and they should adjust your tax code to give higher rate relief. If your salary or contribution level changes you'll need to let them know so they can adjust it.

Hi again - I just checked the account and can confirm that monthly there is about £38 - £39 tax relief. I imagine this has been the case since about last July when my salary went up. Can I add up the amount and claim back from HMRC or is it only possible to get it back form now? Also, can I claim the whole amount of the £39 each month?

Sorry for all the questions and thanks to all who replied. Has been really helpful, certainly way beyond the shoulder shrugging I'd get form the HR dept!

Easiest way is to ask the pension provider for a tax statement for your contributions in 2022/23 tax year. Or you might be able to generate/download one online. This should show your net and gross contributions in the tax year, then you can contact HMRC, give them the figures, and ask them for a refund for the extra tax relief for last tax year. They will also adjust your tax code on the assumption it will continue at the same rate so you'll get the extra relief from 2023/24 in your pay through a higher tax code. This will be a guess and if your salary/contributions change you'll need to tell them so they can adjust.

You could manually add the amounts up but there are a couple of foibles, tax relief counts when the net payment is made, not when the tax relief gets added usually a couple of months later, and contributions towards the end of the tax year may count in the following year, for instance if you got paid on 31 March the pension contribution might not have gone in till 6 April and so be in the 2023/24 tax year.

So you'd need to look at your pension statements, add all your contributions in the tax year (ie the approx £159 amounts), do not add tax relief or employer contributions. That's your net RAS contribitions. Then divide by 0.8 to get your gross contributions. But it's probably safer to get a tax statement from your pension provider.

See https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

Just to confirm - simply adding up the £39 tax relief increments on the statement and telling them the amount won't work? 

That is not what HMRC need to know. Tell them the amount that you physically paid - nothing else.