SIPP and tax relief

Milito22

Hi, I contribute to a SIPP and I get 20% tax relief at source from the SIPP provider; however as I pay income tax at 40%, I want to claim back the extra 20% tax relief. Here's where I get stuck: everywhere it says you can claim back the higher rate tax relief via Self Assessment tax return, but I don't do a SA, as I am employed. How do I inform HMRC that I want my 20% back?

They make it so difficult!
thanks in advance

Dazed_and_C0nfused

There is no fixed "extra 20%".

Any additional tax relief depends on your overall tax position.  It might be 20%.  Or much less.  Or much more.

Self Assessment isn't necessary just to claim tax relief on pension contributions.

You simply need to notify HMRC of the fact that you are making RAS pension contributions and what the gross amount of the contribution was for each tax year involved.  Make it clear you are telling them if the gross contribution inclusive of the basic rate tax relief the pension company added.

If you are making contributions in the current tax year you could also provide an estimate of what you expect the gross contribution will be in this tax year.

Any tax relief given via your tax code is only ever provisional and will be reviewed once the tax year has finished.

Plenty of information on gov.uk
https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

ader42

How do you do it? You do a Self Assessment. There is nothing to stop you doing one.  

Doctor_Who

Taken from the link below:

If you are a higher or additional rate taxpayer and you normally complete a Self Assessment tax return, tell HMRC about your pension contributions – and claim any tax relief – by completing the appropriate section on your tax return. If you do not complete a tax return, you can give the details on form P810 Tax Review – this is not available online and is only available by contacting HMRC. However, you can also give HMRC details of pension contributions online, via your Personal Tax Account.

https://www.litrg.org.uk/tax-guides/tax-basics/do-i-have-join-pension-scheme/do-you-know-how-tax-relief-your-pension

FlimFlam01

if you earn less than £100,000 but more than £50,000 then you can phone up HMRC and give them the details over the phone about your contributions and they'll adjust your tax code and/or give you a refund depending on the amount in question.  No need for Self Assessment for this simple activity.

xylophone

you can phone up HMRC

Just give yourself plenty of time - average wait  time 50 minutes  - I waited forty before getting through having started my call at 8am.

Ans be prepared for the truly nerve shredding music and the endless messages concerning going on line - does anybody at that benighted organisation not realise that nobody would wait for hours on end to speak to a human being if he/she could sort out the query on line?

That said, when I finally got through to an agent he was helpful.....

ader42

Sounds quicker to do a Self Assessment online then  

Qyburn

I did my Self Assessment on 24th April, the refund was in my bank on 2nd May

Doctor_Who

Can you choose to do SA? I was on SA for ~10 years, but in 2018/19 HMRC wrote saying that was the last year I was required to do SA. I've since been using my personal tax account to update savings, dividend and pension income.

badmemory

Doctor_Who said:

Can you choose to do SA? I was on SA for ~10 years, but in 2018/19 HMRC wrote saying that was the last year I was required to do SA. I've since been using my personal tax account to update savings, dividend and pension income.

They stopped me too & insisted on the simple assessment.  They told me if I filed self assessment they would ignore it.  Apart from the hanging on I quite enjoy ringing them & telling them they are wrong.

Albermarle

Doctor_Who said:

Can you choose to do SA? I was on SA for ~10 years, but in 2018/19 HMRC wrote saying that was the last year I was required to do SA. I've since been using my personal tax account to update savings, dividend and pension income.

Same for me, they blocked me from using it.
However behind the scenes I was somehow still linked to the SA system and therefore my annual tax calculation ( P800) was not happening. It took a few phone calls and a strong complaint to get it sorted !