New online way to claim Pension Tax relief via Government Gateway

Sarahspangles

Well, this will save me writing a letter. I am on the point of making my last SIPP contribution for the current tax year, so presumably I can use it after that. Interesting time of year to roll it out.

SacredStephan

HMRC are still requiring proof that the contributions were made, even though they already have this information.

Simes122

SacredStephan said:

HMRC are still requiring proof that the contributions were made, even though they already have this information.

I do wonder how much info they actually have on pensions.  I suspect the systems are so fragmented that they are largely dependent on users advising them.  Amounts contributed, lump sum allowances consumed etc etc

AlanP_2

Simes122 said:

SacredStephan said:

HMRC are still requiring proof that the contributions were made, even though they already have this information.

I do wonder how much info they actually have on pensions.  I suspect the systems are so fragmented that they are largely dependent on users advising them.  Amounts contributed, lump sum allowances consumed etc etc

I think that is nail on head. They have all the information but each system has a fragment of the picture with no overall view.

We had to provide evidence for a SIPP contribution last year from the platform. They gave us a "letter" confirming the contributions but pointed out that HMRC already knew what had been contributed against the relevant name & NI number as that was part of the "reclaim BR relief" process.

bhunachicken

I'm not sure if this applies to me, and I got a bit confused while completing the information.

I have been paying into a Scottish Widows private pension (stakeholder) for the past 10 years.

I also have a workplace pension.

I was just trying to find out if filling out this information will save me any further tax, but while I was completing the information, it asked me about my pension schemes. I wasn't sure if I should include both of those, or just the private one that I'm contributing to. I'm sure that HMRC knows all about my workplace (PAYE) pension, but it wasn't clear whether it's necessary for me to include that.

Dazed_and_C0nfused

bhunachicken said:

I'm not sure if this applies to me, and I got a bit confused while completing the information.

I have been paying into a Scottish Widows private pension (stakeholder) for the past 10 years.

I also have a workplace pension.

I was just trying to find out if filling out this information will save me any further tax, but while I was completing the information, it asked me about my pension schemes. I wasn't sure if I should include both of those, or just the private one that I'm contributing to. I'm sure that HMRC knows all about my workplace (PAYE) pension, but it wasn't clear whether it's necessary for me to include that.

I think it's only for someone who has paid tax above the basic rate and has contributed to a pension scheme which uses the relief at source method.

So if for example your workplace pension used the net pay method (where salary is say £60k, pension contributions £6k and P60 shows taxable pay as £54k) and your stakeholder scheme uses the relief at source method (where the pension company adds 25% to your contribution) then you would only need to include the stakeholder scheme as you have already received the maximum possible tax relief on the net pay contributions.

It is a little surprising the method of contributing isn't explicitly mentioned.  But pension terminology can be confusing!