Scottish taxpayer - claiming tax relief on regular contributions when on Intermediate rate (21%)

gravel_2

Trying to get my head around this. Not for me but for someone I help do SA. They are on Scottish intermediate rate for income tax (21%) and their workplace pension is NEST. I understand NEST to be relief at source.

Is it correct to say that NEST will only have claimed the 20% UK basic rate and 1% is therefore sitting on the table?

I understand for those in Scotland on 19% they just get 20% relief anyway but not sure about 21%.

I know this won't be mega money just trying to see if it's worth claiming and couldn't find much literature on the topic.

Cheers

NoMore

Yes they can claim it

molerat

RAS pension contributions increase all the Scottish rate band starting points in exactly the same way as elsewhere so the gross pension contribution should be entered as normal.

https://www.mygov.scot/scottish-income-tax/allowances-and-reliefs

Dazed_and_C0nfused

gravel_2 said:

Trying to get my head around this. Not for me but for someone I help do SA. They are on Scottish intermediate rate for income tax (21%) and their workplace pension is NEST. I understand NEST to be relief at source.

Is it correct to say that NEST will only have claimed the 20% UK basic rate and 1% is therefore sitting on the table?

I understand for those in Scotland on 19% they just get 20% relief anyway but not sure about 21%.

I know this won't be mega money just trying to see if it's worth claiming and couldn't find much literature on the topic.

Cheers

If they complete a tax return there is nothing to "claim" as such, you just compete the return correctly.

Which involves including RAS pension contributions.

gravel_2

Thanks - we added the gross contribution number and it had an odd effect on the tax calculation.

The student loan (Plan 01) due on SA earnings went from £115 to zero owed. So where we believe there should be perhaps £20 returned from the missing 1% on RAS contributions, the overall saving of including the gross pension contribution is more like £140 on total owed due to zeroing of student loan. Does that make sense? I am not aware of a reason it would calculate out this way.

gravel_2

Sorry to bump - anyone any idea on above?