How to write to HMRC about SIPP contrib?

waveyjane

Apparently it's OK to just write to HMRC to claim additional higher rate relief on SIPP contributions. I'd rather not faff with a self-assessment, so that's good.

Assuming I need to add the fact that I'm doing monthly contributions from my salary into my DC work pension, I think it will mean I will be contributing a gross amount that is above the £60K annual allowance. It's defintely below my salary though (which went up a bit, along with a bonus, hence my payment in). So this means I need to carry forward, yes?

If so, how to I express that in the letter? I have the following draft:

+++++

I want to claim higher rate tax relief on a contribution I made to my Personal Pension Plan with [provider], plan reference number [xxxx].

It's for the year 6th April 2023 to 5th April 2024. I contributed £xx,xxx  gross, not including stuff paid in by my employer with relief sauce. 

I think this is more than the annual allowance, so please can I forward from last year? 

And please make your payment to:

[bank details here]

Oh, and my salary from my current employer [name] in this tax year is now £xx,xxx. 

I remain, sirs, your obedient servant,

+++++

NoMore

Microsoft Word - Claiming Pension Higher Rate Tax Relief 080414 (clairvilleyork.co.uk)

Example letter at end of the above .

You don't need to mention about carryover or employer contributions, there's no need to declare using carry forward for AA. Just keep good records to demonstrate you had enough for it, if it is ever queried. 

Dazed_and_C0nfused

You don't need to mention use of carry forward as you are responsible for monitoring that and it isn't of interest to HMRC unless you exceed your annual allowance (inclusive of any carry forward you have used).

Neither should you mention employer contributions (this includes salary sacrifice) as these do not attract any tax relief for you.

What is important is that you make it clear you are notifying them of your RAS contributions and also you should be clear about what the gross and net contributions will be.

Providing an estimate for the following tax year would also be prudent if you expect this to be different, particularly a reduction.

Don't forget any relief received via a tax code adjustment is just provisional, the final position will only be determined once the tax year is finished.

Do you expect your taxable income to exceeds either £100k or £150k?
NB.  RAS contributions do not reduce your taxable income.

waveyjane

Oh OK. I'll use that template for the letter then (odd that the HMRC site doen't have one). Thanks! And no, my income will not exceed £100K.

molerat

You do realise a letter may not get actioned for maybe up to 6 months.

A telephone call will do it and have codes allocated within a couple of days.

hara____

It's also possible to do this online, via your HMRC personal tax account. Only needs a sentence to ask for an addition to your tax code for the relevant amount (not the gross SIPP contribution but the amount you need your tax free personal allowance to increase by).

Though I don't know whether there's a limit to the size of the adjustment you can ask for in this convenient way.

waveyjane

molerat said:

You do realise a letter may not get actioned for maybe up to 6 months.

A telephone call will do it and have codes allocated within a couple of days.

Just a footnote on this for anyone interested: I called them (only a 55min wait - I think they've got faster recently!) and they said that for anything over £10,000 you have to write to them enclosing evidence from your provider for the payment.

So I have sharpened my quill :-) 

rnj

i wrote a hand written letter on A5 and it was accepted however this year they wrote back asking for proof of contributions.

waveyjane

rnj said:

i wrote a hand written letter on A5 and it was accepted however this year they wrote back asking for proof of contributions.

Do you know what form that proof can be in? Does it need to show both your net and the gross (basic rate) contribution?