Tax Relief after SIPP contributions

davethebb

I currently pay £60k into my SIPP by salary sacrifice and from my employer's contribution. I am also taxed at 40% on approximately £4k of my remaining salary. In 2020 I was made redundant I paid less into my SIPP but was taxed at 40% on £10k. Before this, my Salary sacrifice contributions meant I kept my taxable income below the higher rate tax threshold. 

My questions am I able (and how) to claim additional tax relief on my SIPP contributions and if so will this only be for the years I paid tax at 40% after my SIPP contributions?

davethebb

I currently pay £60k into my SIPP by salary sacrifice and from my employer's contribution. I am also taxed at 40% on approximately £4k of my remaining salary. In 2020 I was made redundant I paid less into my SIPP but was taxed at 40% on £10k. Before this, my Salary sacrifice contributions meant I kept my taxable income below the higher rate tax threshold. 

My questions am I able (and how) to claim additional tax relief on my SIPP contributions and if so will this only be for the years I paid tax at 40% after my SIPP contributions?

Dazed_and_C0nfused

You can only ever get tax relief for the tax year the contribution was paid in.

Which tax year(s) do you think might be eligible for some additional tax relief?

davethebb

I was hoping 20/21 as I was made redundant in June 2020 and then for this current tax year although I was wondering if I could use last year's allowance as I did not use (contribute) to my SIPP last year and pay more than £60k?

Dazed_and_C0nfused

Did you need to complete a tax return for the 2020-21 tax year?

Do you have details of the RAS contributions made during 2020-21?

Have you calculated how much unused annual allowance you have available to carry forward into the current tax year?

davethebb

No, I have not completed a tax return for more than 15 years. so will I need to do one or can I simply phone them, or is there a more specific form to use/complete?

If RAS is Relief at source, no I don't have this yet but I have requested this from Interactive Investor, my SIPP provider.

I believe I have £10k remaining but I will need to check this with II.

QrizB

davethebb said:

My questions am I able (and how) to claim additional tax relief on my SIPP contributions and if so will this only be for the years I paid tax at 40% after my SIPP contributions?

No, not from what you've said. If your contributions were salsac, you didn't receive that salary and didn't pay any tax on it, so there's no tax to reclaim.

Dazed_and_C0nfused

No, you won't need to complete a return just to claim higher rate tax relief but if you had already completed a return the process would be totally different.

Yes, RAS = relief at source.  Once you have details of the contributions you made in 2020-21 you can then contact HMRC to claim any additional relief due for that year.  You must have claimed by 5 April 2025.

davethebb

Thank you. Can I also use the used £10k 22/23 allowance this year?

MallyGirl

Duplicate thread reported 

QrizB

davethebb said:

If RAS is Relief at source, no I don't have this yet but I have requested this from Interactive Investor, my SIPP provider.

Your pension company should send you a statement at the end of each year, detailing the payments you've made and the tax relief you've received.

With II it's probably a pdf document in the "documents" section of your online account.

davethebb said:

Thank you. Can I also use the used £10k 22/23 allowance this year?

HMRC have an online calculator here:
https://www.gov.uk/guidance/check-if-you-have-unused-annual-allowances-on-your-pension-savings

Once you have details of your pension contributions for previous tax years, you can use the calculator to work out how much you can pay in this year.