Higher rate tax pension contributions

Giovanni88

Hello,
Long time follower, first time poster.

So I have a work pension that I contribute to and I believe it to be 'tax at source'. On my weekly payslip if I add my basic 39 hours and my overtime the total amount adds up to amount shown in the Gross taxable income.
I believe the £80 per week i put into pension is taken after tax, then sent to standard life and they claim the 20% basic rate back.

However for the past few years I've been in the higher rate bracket but have not claimed the remainder of the tax relief from HMRC. I am aware this could be back dated for the previous 4 years.

How do I go about doing this? I have p60's and a pension statement covering said period. I have been filling self assessments for these years as i've been having to pay back the child tax benefit (we get stung by the setup of that thing every year)

How do I get this sorted ASAP.

Thanks 

Linton

Won't the pension payments be included in your self assessment?  HMRC should calculate the correct tax from that.  

QrizB

Just in case you've missed Linton's meaning, there's a box on the Self Assessment forms where you are meant to state your gross Relief at Source pension contributions. It's Box 1 on the "Tax reliefs" page.

If you record your gross contributions in this box, HMRC will adjust your basic rate threshold by an equivalent amount.

Giovanni88

Linton said:

Won't the pension payments be included in your self assessment?  HMRC should calculate the correct tax from that.  

QrizB said:

Just in case you've missed Linton's meaning, there's a box on the Self Assessment forms where you are meant to state your gross Relief at Source pension contributions. It's Box 1 on the "Tax reliefs" page.

If you record your gross contributions in this box, HMRC will adjust your basic rate threshold by an equivalent amount.

Ok thankyou for you're replies.

I did not see/understand it at the time of filling in the self assessment. My sole reason for doing the self assessment was for the child tax benefit repayment that knew I'd gave to make and I guess I just blind sided myself and didn't see or think about the pension aspect.

How do I go about rectifying this for the past 4 years that I can? 

QrizB

You should be able to go back and edit some of your previous self assessment returns? I don't know how far back you can go, sorry.

Dazed_and_C0nfused

Giovanni88 said:

Linton said:

Won't the pension payments be included in your self assessment?  HMRC should calculate the correct tax from that.  

QrizB said:

Just in case you've missed Linton's meaning, there's a box on the Self Assessment forms where you are meant to state your gross Relief at Source pension contributions. It's Box 1 on the "Tax reliefs" page.

If you record your gross contributions in this box, HMRC will adjust your basic rate threshold by an equivalent amount.

Ok thankyou for you're replies.

I did not see/understand it at the time of filling in the self assessment. My sole reason for doing the self assessment was for the child tax benefit repayment that knew I'd gave to make and I guess I just blind sided myself and didn't see or think about the pension aspect.

How do I go about rectifying this for the past 4 years that I can? 

You've misunderstood Self Assessment.

HICBC might be the reason you need to file a return, but if you are filing one you need to complete it accurately, not pick and choose what sections to complete.

You have 2 days to file an amendment for 2022-23 and a year and two days to file an amendment for 2023-24.

The time limit for amending the previous years returns (2020-21 and 2021-22) has long since passed and your only option now is to make a claim for overpayment relief.

There is guidance here, it is more convoluted then filing an amended return but is now your only option.  You need to look at the If you've missed the deadline to change your return and What to include sections.

https://www.gov.uk/self-assessment-tax-returns/corrections

Giovanni88

Dazed_and_C0nfused said:

Giovanni88 said:

Linton said:

Won't the pension payments be included in your self assessment?  HMRC should calculate the correct tax from that.  

QrizB said:

Just in case you've missed Linton's meaning, there's a box on the Self Assessment forms where you are meant to state your gross Relief at Source pension contributions. It's Box 1 on the "Tax reliefs" page.

If you record your gross contributions in this box, HMRC will adjust your basic rate threshold by an equivalent amount.

Ok thankyou for you're replies.

I did not see/understand it at the time of filling in the self assessment. My sole reason for doing the self assessment was for the child tax benefit repayment that knew I'd gave to make and I guess I just blind sided myself and didn't see or think about the pension aspect.

How do I go about rectifying this for the past 4 years that I can? 

You've misunderstood Self Assessment.

HICBC might be the reason you need to file a return, but if you are filing one you need to complete it accurately, not pick and choose what sections to complete.

You have 2 days to file an amendment for 2022-23 and a year and two days to file an amendment for 2023-24.

The time limit for amending the previous years returns (2020-21 and 2021-22) has long since passed and your only option now is to make a claim for overpayment relief.

There is guidance here, it is more convoluted then filing an amended return but is now your only option.  You need to look at the If you've missed the deadline to change your return and What to include sections.

https://www.gov.uk/self-assessment-tax-returns/corrections

Hello,
Thankyou for you're help. I have now gone back and amended the 22/23 and 23/24 self assessments. These are now processing and it seems by my calculations that both combined will add up to a fairly sizeable chunk of money that will eventually be put into my pension so thankyou all. 

Lesson learnt and I won't be making that mistake again.

One last thing....

On the child tax benefit repayment I believe that they are moving the boundaries for the coming tax year, is this correct?
My wife earns approx 12k a year and I earn around 60k per year so most years we get stung and I have to pay the full CTB back. I always hated how you could have couples both earning upto 49k each and therefore far far more combined  not paying anything whilst others get penalised for it.

Thankyou

Dazed_and_C0nfused

Giovanni88 said:

Dazed_and_C0nfused said:

Giovanni88 said:

Linton said:

Won't the pension payments be included in your self assessment?  HMRC should calculate the correct tax from that.  

QrizB said:

Just in case you've missed Linton's meaning, there's a box on the Self Assessment forms where you are meant to state your gross Relief at Source pension contributions. It's Box 1 on the "Tax reliefs" page.

If you record your gross contributions in this box, HMRC will adjust your basic rate threshold by an equivalent amount.

Ok thankyou for you're replies.

I did not see/understand it at the time of filling in the self assessment. My sole reason for doing the self assessment was for the child tax benefit repayment that knew I'd gave to make and I guess I just blind sided myself and didn't see or think about the pension aspect.

How do I go about rectifying this for the past 4 years that I can? 

You've misunderstood Self Assessment.

HICBC might be the reason you need to file a return, but if you are filing one you need to complete it accurately, not pick and choose what sections to complete.

You have 2 days to file an amendment for 2022-23 and a year and two days to file an amendment for 2023-24.

The time limit for amending the previous years returns (2020-21 and 2021-22) has long since passed and your only option now is to make a claim for overpayment relief.

There is guidance here, it is more convoluted then filing an amended return but is now your only option.  You need to look at the If you've missed the deadline to change your return and What to include sections.

https://www.gov.uk/self-assessment-tax-returns/corrections

Hello,
Thankyou for you're help. I have now gone back and amended the 22/23 and 23/24 self assessments. These are now processing and it seems by my calculations that both combined will add up to a fairly sizeable chunk of money that will eventually be put into my pension so thankyou all. 

Lesson learnt and I won't be making that mistake again.

One last thing....

On the child tax benefit repayment I believe that they are moving the boundaries for the coming tax year, is this correct?
My wife earns approx 12k a year and I earn around 60k per year so most years we get stung and I have to pay the full CTB back. I always hated how you could have couples both earning upto 49k each and therefore far far more combined  not paying anything whilst others get penalised for it.

Thankyou

No, it is the current tax year where things have changed.

HICBC used to be applied in the £50-60k range with 100% payable once you hit £60k.

From 2024-25 the range is £60-80k.  

So you may avoid it completely.

Although your original question related to higher rate tax relief I presume you realise that the relief at source pension contributions reduce your adjusted net income, which is what HICBC is calculated on.  So you will likely have had extra benefit from your amendment, some higher rate relief and a reduction in HICBC 😉

Qyburn

Giovanni88 said:

Hello,
Thankyou for you're help. I have now gone back and amended the 22/23 and 23/24 self assessments. These are now processing and it seems by my calculations that both combined will add up to a fairly sizeable chunk of money that will eventually be put into my pension so thankyou all. 

I may have misunderstood what you mean, but the tax repayment will go to you. It's a tax overpayment, not a pension underpayment.

You can put an equivalent amount into a private pension if you have sufficient earned income and allowances but it will count as contribution in the year that you do so. 

Dazed_and_C0nfused

Qyburn said:

Giovanni88 said:

Hello,
Thankyou for you're help. I have now gone back and amended the 22/23 and 23/24 self assessments. These are now processing and it seems by my calculations that both combined will add up to a fairly sizeable chunk of money that will eventually be put into my pension so thankyou all. 

I may have misunderstood what you mean, but the tax repayment will go to you. It's a tax overpayment, not a pension underpayment.

You can put an equivalent amount into a private pension if you have sufficient earned income and allowances but it will count as contribution in the year that you do so. 

I'd assumed the "eventually" comment meant the op was going to be using the tax refund to make an extra pension contribution in due course.

But you could be right, they may have misunderstood that aspect.

Op, any personal tax saving benefits you, it is never added to your pension.  You will only ever get the 20% basic rate relief added to your pension.

But as @Qyburn says you can use that tax refund to make an additional contribution in the current (or next) tax year. 

And in case you were wondering you can never backdate pension contributions to a previous tax year.

Giovanni88

Thanks.

Yes indeed I misunderstood the process. I thought that the money went straight into my pension rather than come back to me.

If/when I recieve it I will most probably put it into my pension anyway, although a holiday does seem tempting!

Lastly, in what form will I receive this money back? In my payslip, or cheque in post?

Thanks again everyone, I wouldn't of been able to sort this as easily without you're help.