How to claim the higher rate tax back on pension contributions?

Dazed_and_C0nfused

retiringtoosoon said:

Prism said:

I have always found that the only way to have complete visability of tax and pension contributions is to do a tax return. No need to talk to HMRC. I can't remember if there is an option to tell them that you had no tex rebate at all though.

I completed a tax return for the first time this year for 2022/23 period - whilst completing it i did check whether there was a way to declare payments made to pension without tax relief and couldnt find a section.

There is, not for the situation you are describing, but there is a box for personal contributions which have not not had any tax relief.

And the same box would be on the 2021-22 return as pension contribution methods haven't changed recently.

NB.  Ones that aren't paid under the net pay method.

Albermarle

Prism said:

I have always found that the only way to have complete visability of tax and pension contributions is to do a tax return. No need to talk to HMRC. I can't remember if there is an option to tell them that you had no tex rebate at all though.

If you do not need to a tax return ( by their criteria) they can block you from doing one.

retiringtoosoon

so what are the recommended next steps?

Phone HMRC on monday at 8am?

Write a letter to them ?

Dazed_and_C0nfused

I honestly think you're wasting your time phoning.

You would have more chance of a positive outcome if you sent evidence, including the response from Standard Life, without documenting everything the most likely outcome is HMRC will treat it as a RAS contribution.

Which just increases your basic rate band, it doesn't reduce the income which gets taxed.

retiringtoosoon

Dazed_and_C0nfused said:

I honestly think you're wasting your time phoning.

You would have more chance of a positive outcome if you sent evidence, including the response from Standard Life, without documenting everything the most likely outcome is HMRC will treat it as a RAS contribution.

Which just increases your basic rate band, it doesn't reduce the income which gets taxed.

/sigh

Thanks. I will start to draft a letter and print out various documents.

Albermarle

The motto from this and similar stories is that if you intend to make a one off/first personal contribution to a workplace pension, then give them a call first to make sure they can handle it OK.

retiringtoosoon

I've drafted a letter as per below to HMRC. Anything else to add/amend?

--------------------------------------------------------

Dear HMRC

I'm writing as I believe I have paid too much tax for the year 2021/22.

I made a personal pension payment to Standard Life on 7th March 2022 for £2,000 which has not benefited from tax relief. I believe that my personal allowance for the year should be increased by £2,000 to take this into account.

Please find enclosed supporting documentation, including:

• My payslip summary spreadsheet for 2021/22, and my calculation
• P60 end of year certificate
• Contribution schedule to Standard Life from 22 February 2018 to 14 June 2022
• Correspondence with Standard Life about my £2,000 contribution that has not received tax relief.

Please review and let me know next steps. More than happy to take a call to discuss.

Kind regards

Albermarle

retiringtoosoon said:

I've drafted a letter as per below to HMRC. Anything else to add/amend?

--------------------------------------------------------

Dear HMRC

I'm writing as I believe I have paid too much tax for the year 2021/22, due to a problem with tax relief on pension contributions at the provider

I made a personal pension payment to Standard Life on 7th March 2022 for £2,000 which has not benefited from basic rate tax relief. I believe that my personal allowance for the year should be increased by £2,000 to take this into account.

Please find enclosed supporting documentation, including:

• My payslip summary spreadsheet for 2021/22, and my calculation
• P60 end of year certificate
• Contribution schedule to Standard Life from 22 February 2018 to 14 June 2022
• Correspondence with Standard Life about my £2,000 contribution that has not received basic rate tax relief.

Please review and let me know next steps. More than happy to take a call to discuss.

Kind regards

My suggestion

retiringtoosoon

Albermarle said:

retiringtoosoon said:

I've drafted a letter as per below to HMRC. Anything else to add/amend?

--------------------------------------------------------

Dear HMRC

I'm writing as I believe I have paid too much tax for the year 2021/22, due to a problem with tax relief on pension contributions at the provider

I made a personal pension payment to Standard Life on 7th March 2022 for £2,000 which has not benefited from basic rate tax relief. I believe that my personal allowance for the year should be increased by £2,000 to take this into account.

Please find enclosed supporting documentation, including:

• My payslip summary spreadsheet for 2021/22, and my calculation
• P60 end of year certificate
• Contribution schedule to Standard Life from 22 February 2018 to 14 June 2022
• Correspondence with Standard Life about my £2,000 contribution that has not received basic rate tax relief.

Please review and let me know next steps. More than happy to take a call to discuss.

Kind regards

My suggestion

Thanks.

Some further clarity from Standard Life this morning.

Albermarle

Very inaccurate message that could confuse HMRC.

A Relief at Source scheme, is where contributions are made after tax.

Contributions from pre tax income is called a' Net Pay scheme'

The terms are confusing but you would think SL would get that right ! Suggest you ask them for a corrected message.
UK Pensions - Relief at source versus net pay: why does it matter and what is the solution? | Insights | Linklaters