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New online way to claim Pension Tax relief via Government Gateway

Claim tax relief on your private pension payments - GOV.UK

Looks like HMRC have finally added a simple online method to claim Tax relief for Pension contribution.

Interestingly asking for Net contributions instead of Gross, guess they found people were getting confused when reporting it previously as they wanted the gross.

Also requiring proof of contributions. I used to ring at the start of the year and get a tax code change due to a expected monthly contribution, not sure if this method will work for that.
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Comments

  • BikingBud
    BikingBud Posts: 2,239 Forumite
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    This appears to support the current HMRC position that Basic Rate Taxpayers need to follow other routes:

    Who can claim
    To be eligible to claim tax relief you must be paying into a personal or workplace pension scheme and be paying more than the basic rate of tax.
    Not sure it is the route to reclaim that some might need.
  • NoMore
    NoMore Posts: 1,436 Forumite
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    BikingBud said:
    This appears to support the current HMRC position that Basic Rate Taxpayers need to follow other routes:

    Who can claim
    To be eligible to claim tax relief you must be paying into a personal or workplace pension scheme and be paying more than the basic rate of tax.
    Not sure it is the route to reclaim that some might need.
    Not sure what you mean, basic tax payers doing Relief at source have the relief claimed automatically for them by the Pension, there's no need to claim as a basic tax payer.
  • molerat
    molerat Posts: 33,483 Forumite
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    NoMore said:
    BikingBud said:
    This appears to support the current HMRC position that Basic Rate Taxpayers need to follow other routes:

    Who can claim
    To be eligible to claim tax relief you must be paying into a personal or workplace pension scheme and be paying more than the basic rate of tax.
    Not sure it is the route to reclaim that some might need.
    Not sure what you mean, basic tax payers doing Relief at source have the relief claimed automatically for them by the Pension, there's no need to claim as a basic tax payer.
    Some were hoping this was the simple method for non tax payers in a net pay scheme to claim the relief as has been promised for some time.

  • DE_612183
    DE_612183 Posts: 3,052 Forumite
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    Is this for people who are 40% tax payers but only get 20% at source?

    for instance I pay 40% tax on my salary ( only a few grand ) but if I made a payment into Next - they add on the 20% government relief - should I be claiming the additional 20% somewhere?
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 16,196 Forumite
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    edited 4 February at 2:10PM
    DE_612183 said:
    Is this for people who are 40% tax payers but only get 20% at source?

    for instance I pay 40% tax on my salary ( only a few grand ) but if I made a payment into Next - they add on the 20% government relief - should I be claiming the additional 20% somewhere?
    It looks to be aimed purely at those using the relief at source method.

    No idea about Next but if mean Nest then I believe they use relief at source.
  • ali_bear
    ali_bear Posts: 126 Forumite
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    Hopefully this will work better than their previous scheme - that involved adjusting your tax free amount (and tax code) upwards to give you the extra relief on contributions paid out of your take-home pay that are over the 40% tax rate threshold. 
    A little FIRE lights the cigar
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 16,196 Forumite
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    ali_bear said:
    Hopefully this will work better than their previous scheme - that involved adjusting your tax free amount (and tax code) upwards to give you the extra relief on contributions paid out of your take-home pay that are over the 40% tax rate threshold. 
    I don't think the process of giving the tax relief is changing, it's just how you get the information to HMRC in the first place.
  • BikingBud
    BikingBud Posts: 2,239 Forumite
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    molerat said:
    NoMore said:
    BikingBud said:
    This appears to support the current HMRC position that Basic Rate Taxpayers need to follow other routes:

    Who can claim
    To be eligible to claim tax relief you must be paying into a personal or workplace pension scheme and be paying more than the basic rate of tax.
    Not sure it is the route to reclaim that some might need.
    Not sure what you mean, basic tax payers doing Relief at source have the relief claimed automatically for them by the Pension, there's no need to claim as a basic tax payer.
    Some were hoping this was the simple method for non tax payers in a net pay scheme to claim the relief as has been promised for some time.

    And for those who pay a lump sum AVC from a source after tax has been taken. We have seen discussion about HMRC applying Concessional Relief but it has been difficult for people to get traction.
  • NoMore
    NoMore Posts: 1,436 Forumite
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    molerat said:
    NoMore said:
    BikingBud said:
    This appears to support the current HMRC position that Basic Rate Taxpayers need to follow other routes:

    Who can claim
    To be eligible to claim tax relief you must be paying into a personal or workplace pension scheme and be paying more than the basic rate of tax.
    Not sure it is the route to reclaim that some might need.
    Not sure what you mean, basic tax payers doing Relief at source have the relief claimed automatically for them by the Pension, there's no need to claim as a basic tax payer.
    Some were hoping this was the simple method for non tax payers in a net pay scheme to claim the relief as has been promised for some time.

    Ah got you. 
  • Marcon
    Marcon Posts: 12,913 Forumite
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    edited 4 February at 4:11PM
    Thanks for flagging the link. It seems to have quite limited applicability (only for higher rate taxpayers who do not complete a self assessment tax return, and then with caveats on the type of pension/pension contribution):

    If you complete a Self Assessment tax return, you must claim through your tax return (for the current tax year and any previous years). Use this service if you are claiming a tax relief through your tax code for just the current tax year.

    You will need to call or write to us to claim tax relief if you are paying the basic rate of tax and:

    • your pension scheme is not set up for automatic tax relief
    • you pay a lump sum into a personal pension that is not under a net pay scheme

    Who can claim

    To be eligible to claim tax relief you must be paying into a personal or workplace pension scheme and be paying more than the basic rate of tax.


    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
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