>£100K income and personal allowance

tallbird_2

In the 22-23 tax year I was fortunate enough to earn around £107K (due to a lot of overtime). My salary is normally around 80k. Due to the impact on personal allowance on salaries over £100K, I opened a SIPP with Fidelity and deposited £9K before the tax year ended, in order to "reduce" my salary to under £100K, and have been given £2250 tax relief in the SIPP, so all good there

I was about to complete the self assessment required when earning >100K, but I see the threshold for this has now gone up to 150K.

My question is, will my personal allowance still be impacted and therefore do I need to do a self assessment in order to get that rectified and potentially reduce tax paid on things like savings interest? I just can't work it out from what I'm reading online. 

All input gratefully received.

thanks, Tallbird

[Deleted User]

It is simply a matter of contacting HMRC to inform them of the gross contribution of £11250. 

If you are not intending to repeat the contribution in this tax year it would be advisable to let them know. 

Dazed_and_C0nfused

tallbird_2 said:

In the 22-23 tax year I was fortunate enough to earn around £107K (due to a lot of overtime). My salary is normally around 80k. Due to the impact on personal allowance on salaries over £100K, I opened a SIPP with Fidelity and deposited £9K before the tax year ended, in order to "reduce" my salary to under £100K, and have been given £2250 tax relief in the SIPP, so all good there

I was about to complete the self assessment required when earning >100K, but I see the threshold for this has now gone up to 150K.

My question is, will my personal allowance still be impacted and therefore do I need to do a self assessment in order to get that rectified and potentially reduce tax paid on things like savings interest? I just can't work it out from what I'm reading online. 

All input gratefully received.

thanks, Tallbird

For 2022-23 I think income above £100k still requires a Self Assessment return.

You include the RAS contribution on the return to get any higher rate relief due (and get the correct Personal Allowance).

tallbird_2

Apologies, rookie error, I meant 23-24 tax year

[Deleted User]

tallbird_2 said:

Apologies, rookie error, I meant 23-24 tax year

Oddly I thought that was what you meant - my advice still stands!

MetaPhysical

[Deleted User] said:

It is simply a matter of contacting HMRC to inform them of the gross contribution of £11250. 

If you are not intending to repeat the contribution in this tax year it would be advisable to let them know. 

Correct because if you don't they will ADD to your personal allowance, with them assuming you will be doing this again.  And if you won't be doing this again and don't tell them then you will owe them.  In my case they issued me a 15700 personal allowance assuming I'd be making a large pension payment again.  I immediately corrected this on my online tax account.  And I only made that large payment last year in the first place because of the 100k PA taper.

Our Personal Allowance tax system is nuts.  If they just had a way of being able to inform them of your plans without a two hour wait on the telephone it would all be a lot more straightforward than all these "assumptions" about what you will and will not be doing.

tallbird_2

Hi all

By way of an update, I contacted HMRC by phone a few days ago, and to my surprise it was remarkably quick and easy. I didn't have to queue at all (just a few minutes to get through the various "press 1" options) and the person I spoke to not only understood my query but adjusted my tax code there and then. It seemed too good to be true so maybe time will tell, but I live in renewed hope.

Thanks for the replies folks, much appreciated.