NHS pension - Tax relief on additional payments

Dazed_and_C0nfused

Oppenheimer said:

Oppenheimer said:

A couple of things to bear in mind/heads up for:

• depending on whose desk within HMRC your letter lands on, it will either be processed right or wrong - over the years I made two separate additional pension lump sums - the first time it was processed no problem, the second time it took them three attempts to process it right and I have to educate and chase them up (the following point might helps with this)
• the NHS calls it an Additional Payment (or whatever) the HMRC refers to this as Retirement Annuity Payment (this is VERY important) - if you speak to HMRC say it is a Retirement Annuity Payment which should be deducted from your taxable income.

Given you are talking about the last tax year I would expect you to get a refund within weeks.

Good luck.

Don't want to annoy fellow members on this forum but I would refer you to point 2 here - even just say I know that HMRC process it this way to get tax relief!

It isn't a retirement annuity payment though, they relate to policies which commenced in 1988 or earlier.

HMRC might use that description to allow the appropriate tax relief but I honestly don't think claiming it is a retirement annuity payment is going to help the op.

They would be far better off telling the adviser that their own PAYE Manual explains how they deal with this type of contribution.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye130025

mrkds

Thanks everyone for the continued advice and encouragement. This does feel like getting blood out of a stone!

I'll give them a ring on Monday and see what happens.  

hugheskevi

mrkds said:

Thanks everyone for the continued advice and encouragement. This does feel like getting blood out of a stone!

I'll give them a ring on Monday and see what happens.  

If you are put through to someone who sounds like they don't know what they are talking about and just reading a script, it is easiest to call back and hope to get someone more knowledgable than trying to persist.

Another possible approach is to start the conversation by saying that you have a complicated pension tax contribution query, that might get you put through to someone more knowledgeable (it probably won't, but it doesn't hurt to try).

mrkds

Quick update. 

Spoke to a helpful advisor over the phone. They acknowledged my query was not handled correctly and I should be due tax relief. They've escalated the case and hopefully will hear back from them in the next couple of weeks.

Things seem to be moving forward

Oppenheimer

mrkds said:

Quick update. 

Spoke to a helpful advisor over the phone. They acknowledged my query was not handled correctly and I should be due tax relief. They've escalated the case and hopefully will hear back from them in the next couple of weeks.

Things seem to be moving forward

https://youtube.com/shorts/HZni3j0NjDk?si=VRuid9ODuoAdQdzS

Oppenheimer

mrkds said:

Quick update. 

Spoke to a helpful advisor over the phone. They acknowledged my query was not handled correctly and I should be due tax relief. They've escalated the case and hopefully will hear back from them in the next couple of weeks.

Things seem to be moving forward

I would check your online HMRC account at the end of this week as there could be good news waiting for you re tax relief.

mrkds

So it took a while but I finally got my tax relief from HMRC.

Finally! After almost a year and a half since I first contacted them.