Tax code and private pension contributions

twoshots

Hello all.

I have filed my self assessment nice and early this year and applied for my overpaid tax refund due to private pension contributions.

Can continued contributions be factored into my tax code for the coming year? Thanks to my SA they've reduced my personal allowance based on estimated income. But I know I'll make significant contributions this year to a private pension which will lead to a significant amount in overpaid tax.

It's easier to make contributions from income that you haven't already been taxed on

Any pointers welcome as it wasn't obvious when I had a look. 

Dazed_and_C0nfused

twoshots said:

Hello all.

I have filed my self assessment nice and early this year and applied for my overpaid tax refund due to private pension contributions.

Can continued contributions be factored into my tax code for the coming year? Thanks to my SA they've reduced my personal allowance based on estimated income. But I know I'll make significant contributions this year to a private pension which will lead to a significant amount in overpaid tax.

It's easier to make contributions from income that you haven't already been taxed on

Any pointers welcome as it wasn't obvious when I had a look. 

Yes.

How did you answer the question near the end of the return about using the return information to update your current tax code?
NB.  This is a different question to the one about how any tax owed for 2023-24 should be paid (direct to HMRC or via the 2025-26 tax code).

Does your current code include nothing for RAS pension contributions?

twoshots

Thank you for your reply. I think I didn't add anything. This year is the first time I have used a private pension rather than a work one so must have skipped through the end questions too quickly. 

I'll look back. Is the easiest way to amend the return?

Dazed_and_C0nfused

twoshots said:

Thank you for your reply. I think I didn't add anything. This year is the first time I have used a private pension rather than a work one so must have skipped through the end questions too quickly. 

I'll look back. Is the easiest way to amend the return?

I'm not convinced that would work.

A phone call at 8am is probably the easiest option.

You should provide as accurate a guesstimate of your current year earnings (expected P60 pay figure) as possible along with details of the gross RAS contribution you expect to make.  Make it clear you are providing the gross value, inclusive of the basic rate relief.

And don't forget the tax code is only ever provisional, the actual relief due will be established from your 2024-25 tax return in due course.

twoshots

Thanks for your help. I'll see if I can manage to get through

Albermarle

Dazed_and_C0nfused said:

twoshots said:

Thank you for your reply. I think I didn't add anything. This year is the first time I have used a private pension rather than a work one so must have skipped through the end questions too quickly. 

I'll look back. Is the easiest way to amend the return?

I'm not convinced that would work.

A phone call at 8am is probably the easiest option.

You should provide as accurate a guesstimate of your current year earnings (expected P60 pay figure) as possible along with details of the gross RAS contribution you expect to make.  Make it clear you are providing the gross value, inclusive of the basic rate relief.

And don't forget the tax code is only ever provisional, the actual relief due will be established from your 2024-25 tax return in due course.

I thought from many previous threads ( and my own experience), that if you inform HMRC of personal pension/Relief at source contributions for one tax year, and you are due a rebate .Then they automatically adjust your tax code for the next/current tax year, on the assumption you will make the same contributions again?
So you pay less tax, rather than getting a big rebate later.

Dazed_and_C0nfused

Albermarle said:

Dazed_and_C0nfused said:

twoshots said:

Thank you for your reply. I think I didn't add anything. This year is the first time I have used a private pension rather than a work one so must have skipped through the end questions too quickly. 

I'll look back. Is the easiest way to amend the return?

I'm not convinced that would work.

A phone call at 8am is probably the easiest option.

You should provide as accurate a guesstimate of your current year earnings (expected P60 pay figure) as possible along with details of the gross RAS contribution you expect to make.  Make it clear you are providing the gross value, inclusive of the basic rate relief.

And don't forget the tax code is only ever provisional, the actual relief due will be established from your 2024-25 tax return in due course.

I thought from many previous threads ( and my own experience), that if you inform HMRC of personal pension/Relief at source contributions for one tax year, and you are due a rebate .Then they automatically adjust your tax code for the next/current tax year, on the assumption you will make the same contributions again?
So you pay less tax, rather than getting a big rebate later.

It's the doing it via an amended tax return I'm not sure about.

Whether this will prompt an automatic update or not?