PAYING TAX ON INTEREST FROM SAVINGS

DRS1

Did you tell HMRC about the contribution?

westv

DRS1 said:

Did you tell HMRC about the contribution?

I didn't think I needed to as they contributed the additional £250 tax relief.

DRS1

You need to tell them.  There is a link somewhere to do it online.  See here

New online way to claim Pension Tax relief via Government Gateway — MoneySavingExpert Forum

westv

DRS1 said:

You need to tell them.  There is a link somewhere to do it online.  See here

New online way to claim Pension Tax relief via Government Gateway — MoneySavingExpert Forum

Ok thanks. Maybe I mistaken but that link seems to just refer to tax relief. As far as I can see I have already had that.automatically.

dingling68

westv said:

DRS1 said:

You need to tell them.  There is a link somewhere to do it online.  See here

New online way to claim Pension Tax relief via Government Gateway — MoneySavingExpert Forum

Ok thanks. Maybe I mistaken but that link seems to just refer to tax relief. As far as I can see I have already had that.automatically.

You have had the basic rate relief added to your pension. To claim the additional relief you need to advise HMRC as they will not be aware of the extra payment made

westv

dingling68 said:

westv said:

DRS1 said:

You need to tell them.  There is a link somewhere to do it online.  See here

New online way to claim Pension Tax relief via Government Gateway — MoneySavingExpert Forum

Ok thanks. Maybe I mistaken but that link seems to just refer to tax relief. As far as I can see I have already had that.automatically.

You have had the basic rate relief added to your pension. To claim the additional relief you need to advise HMRC as they will not be aware of the extra payment made

Thanks for the info.
My query related to the tax I am paying on savings interest. I had around £1,500 of interest in the 23/24 tax year. I will recheck but it looks like HMRC are applying tax to £1,000 rather than £500 even though I paid an additional £1,000 into my pension to avoid getting into the 40% tax band rate.

Sarahspangles

westv said:

dingling68 said:

westv said:

DRS1 said:

You need to tell them.  There is a link somewhere to do it online.  See here

New online way to claim Pension Tax relief via Government Gateway — MoneySavingExpert Forum

Ok thanks. Maybe I mistaken but that link seems to just refer to tax relief. As far as I can see I have already had that.automatically.

You have had the basic rate relief added to your pension. To claim the additional relief you need to advise HMRC as they will not be aware of the extra payment made

Thanks for the info.
My query related to the tax I am paying on savings interest. I had around £1,500 of interest in the 23/24 tax year. I will recheck but it looks like HMRC are applying tax to £1,000 rather than £500 even though I paid an additional £1,000 into my pension to avoid getting into the 40% tax band rate.

You need to claim. You use the link DRS1 provided in his post above. When you do, HMRC increase your 20% band and reinstate the £1000 personal savings allowance. This will trigger a refund of both the 20% tax you weren’t relieved (ie 40%-20%) plus the tax on savings.

If you do this again, and notify within the tax year, they will change your notice of coding and you’ll receive the refund via you pay packet.

This all assumes it was a straightforward SIPP contribution and not salary sacrifice.

westv

Sarahspangles said:

westv said:

dingling68 said:

westv said:

DRS1 said:

You need to tell them.  There is a link somewhere to do it online.  See here

New online way to claim Pension Tax relief via Government Gateway — MoneySavingExpert Forum

Ok thanks. Maybe I mistaken but that link seems to just refer to tax relief. As far as I can see I have already had that.automatically.

You have had the basic rate relief added to your pension. To claim the additional relief you need to advise HMRC as they will not be aware of the extra payment made

Thanks for the info.
My query related to the tax I am paying on savings interest. I had around £1,500 of interest in the 23/24 tax year. I will recheck but it looks like HMRC are applying tax to £1,000 rather than £500 even though I paid an additional £1,000 into my pension to avoid getting into the 40% tax band rate.

You need to claim. You use the link DRS1 provided in his post above. When you do, HMRC increase your 20% band and reinstate the £1000 personal savings allowance. This will trigger a refund of both the 20% tax you weren’t relieved (ie 40%-20%) plus the tax on savings.

If you do this again, and notify within the tax year, they will change your notice of coding and you’ll receive the refund via you pay packet.

This all assumes it was a straightforward SIPP contribution and not salary sacrifice.

Many thanks for the clarification. Yes, a straightforward one off SIPP contribution.

Edit: Online form filled in and sent. Hopefully I've not made any mistakes!!

Dazed_and_C0nfused

westv said:

dingling68 said:

westv said:

DRS1 said:

You need to tell them.  There is a link somewhere to do it online.  See here

New online way to claim Pension Tax relief via Government Gateway — MoneySavingExpert Forum

Ok thanks. Maybe I mistaken but that link seems to just refer to tax relief. As far as I can see I have already had that.automatically.

You have had the basic rate relief added to your pension. To claim the additional relief you need to advise HMRC as they will not be aware of the extra payment made

Thanks for the info.
My query related to the tax I am paying on savings interest. I had around £1,500 of interest in the 23/24 tax year. I will recheck but it looks like HMRC are applying tax to £1,000 rather than £500 even though I paid an additional £1,000 into my pension to avoid getting into the 40% tax band rate.

The pension tax relief claimed from HMRC by your SIPP provider is something not seemingly connected with your personal tax records.

If you think the calculation for 2023-24 is wrong because the wrong basic rate band has been used then you will need to notify HMRC of the relief at source pension contributions.

They will then recalculate your liability to reflect the increased basic rate band (£38,700 or £38,950 depending on whether the £1,000 you refer to was the net or gross contribution).

westv

No response yet. I'm assuming when they "within 28 working days" it's optimistic.