Higher tax band - Claiming back

AndyPK

For about 18 months I was in a higher tax bracket of 40%

I was also in paying into a private pension. (coming out of my bank account)

I didn't realise at the time, but I was loosing out. 

They were adding  an additional 20%, but I was entitled to more. 

I understand one way to get this money back is to do a tax return. Is there an easier way!!! 

I think I have 4 years to claim this back. Prob 3 now. This started in April 2023 I think.

If I starting filling in tax forms, will they keep wanting me to in future? 

bjorn_toby_wilde

You shouldn’t need to do a tax return.

Write to them with evidence of the payments.

Dazed_and_C0nfused

AndyPK said:

For about 18 months I was in a higher tax bracket of 40%

I was also in paying into a private pension. (coming out of my bank account)

I didn't realise at the time, but I was loosing out. 

They were adding  an additional 20%, but I was entitled to more. 

I understand one way to get this money back is to do a tax return. Is there an easier way!!! 

I think I have 4 years to claim this back. Prob 3 now. This started in April 2023 I think.

If I starting filling in tax forms, will they keep wanting me to in future? 

Nothing you have posted suggests a tax return will be necessary.

The pension company can only ever give basic rate relief, if you are entitled to more than that the onus is on you to claim it from HMRC (which means including the details on a tax return if you had to file one for some reason).

You need to get evidence of the contributions made in 2023-24 (and 2024-25 I presume) and let HMRC have those so they can recalculate your tax position.

A relief at source contribution like the ones you have been paying increase your basic rate tax band, meaning more income is taxed at 20% and less at 40%.  So the personal tax saving will depend on the contribution amount and how much tax you would have been liable to at 40%.

If this stops you from being a higher rate payer altogether there can be extra benefits like an increased savings nil rate band (aka Personal Savings Allowance) and you becoming eligible for Marriage Allowance.

You do have plenty of time to make a claim, for 2023-24 the deadline is 5 April 2028.

Organgrinder

I was in this position last year.

I phoned HMRC, told them how much I was paying and they adjusted my tax code accordingly.

Very straightforward.

As above, you have 4 years for your claim so you should be able to claim for last year too.

hugheskevi

Organgrinder said:

I was in this position last year.

I phoned HMRC, told them how much I was paying and they adjusted my tax code accordingly.

Very straightforward.

As above, you have 4 years for your claim so you should be able to claim for last year too.

This is a very easy way to get the right amount of tax relief for the current tax year, but cannot be used for past years.

HMRC will only code in a gross contribution of up to £10,000. Adjustment for the amount over £10,000 requires action after the end of the tax year.

AndyPK

So I phoned them up in August, and they said I could do it with the form/link below

https://www.gov.uk/guidance/claim-tax-relief-on-your-private-pension-payments

They have now processed it and sent me a cheque for about £30.    (I was expecting more like £1000).

Was on the phone to them for 1 hour today. Really nice guy, but he didn't know what the system was doing and couldn't explain it. Just said your tax code has been adjusted to compensate which I'm not sure I believe. (doesn't apply to this year)

Other things going on with my tax. 

The gross value paid into the pension was £500 short . 
The value of the cheque they said they were going to send me and what they actually sent me is about 70p different. All in all, I have no confidence in the person that processed it has typed the correct numbers into the system

Getting ridiculous how much they owe me now.

Organgrinder

If you were a higher rate tax payer it really shouldn't be difficult.

Do you have a government gateway account? This should show your tax code and how it was calculated.

If you don't want to post details drop me a private message and I'll see if I can make sense of the calculation.

Need gross salary. Pension contributions. Tax code. 

Aylesbury_Duck

hugheskevi said:

Organgrinder said:

I was in this position last year.

I phoned HMRC, told them how much I was paying and they adjusted my tax code accordingly.

Very straightforward.

As above, you have 4 years for your claim so you should be able to claim for last year too.

This is a very easy way to get the right amount of tax relief for the current tax year, but cannot be used for past years.

HMRC will only code in a gross contribution of up to £10,000. Adjustment for the amount over £10,000 requires action after the end of the tax year.

Thanks for this.  I'll be in a position where I'll be adding a gross SIPP contribution of about £21k this tax year.  Should I simply complete my tax return in April 2026 with that information?  What happens next?

DRS1

Aylesbury_Duck said:

hugheskevi said:

Organgrinder said:

I was in this position last year.

I phoned HMRC, told them how much I was paying and they adjusted my tax code accordingly.

Very straightforward.

As above, you have 4 years for your claim so you should be able to claim for last year too.

This is a very easy way to get the right amount of tax relief for the current tax year, but cannot be used for past years.

HMRC will only code in a gross contribution of up to £10,000. Adjustment for the amount over £10,000 requires action after the end of the tax year.

Thanks for this.  I'll be in a position where I'll be adding a gross SIPP contribution of about £21k this tax year.  Should I simply complete my tax return in April 2026 with that information?  What happens next?

You go to the Cutting Tax board and post on the who completed their tax return quickest thread and compare notes on who got their tax refund soonest.

Dazed_and_C0nfused

Aylesbury_Duck said:

hugheskevi said:

Organgrinder said:

I was in this position last year.

I phoned HMRC, told them how much I was paying and they adjusted my tax code accordingly.

Very straightforward.

As above, you have 4 years for your claim so you should be able to claim for last year too.

This is a very easy way to get the right amount of tax relief for the current tax year, but cannot be used for past years.

HMRC will only code in a gross contribution of up to £10,000. Adjustment for the amount over £10,000 requires action after the end of the tax year.

Thanks for this.  I'll be in a position where I'll be adding a gross SIPP contribution of about £21k this tax year.  Should I simply complete my tax return in April 2026 with that information?  What happens next?

Your tax return is processed and then you can claim any tax overpaid on your Self Assessment account.

You don't get a specific tax refund relating to the pension contributions, it's just factored into your overall tax calculation.

Marcon

AndyPK said:

For about 18 months I was in a higher tax bracket of 40%

I was also in paying into a private pension. (coming out of my bank account)

I didn't realise at the time, but I was loosing out. 

They were adding  an additional 20%, but I was entitled to more. 

I understand one way to get this money back is to do a tax return. Is there an easier way!!! 

I think I have 4 years to claim this back. Prob 3 now. This started in April 2023 I think.

If I starting filling in tax forms, will they keep wanting me to in future? 

This sounds a bit vague! Are you certain that:

• you made contributions to your private pension in the same tax year as one in which you were in the 40% tax bracket
• you paid 40% tax on at least as much as you contributed to your private pension (again, in the same tax year)? If you were 'only just' into the 40% tax band, you might not be eligible to higher rate relief on all your contributions.