Paying additional funds into pension this month.

DE_612183

I'm currently a higher tax rate payer - about £60k PA before tax.

I pay into a workplace pension - civil service.

I also have a Nest Pension - if I make a payment into this Nest automatically get me the 20% tax relief - but can I get an extra 20% ( to make up to 40% ) , and how do I do that, and also how much can I pay in?

I presume it's the difference between my £60k and £50270?

Sarahspangles

To reclaim higher rate tax paid you log into your personal tax account (web version) and navigate to the online form available to complete within the gov.uk pages. You have to upload evidence of contribution. This is a new process, they say to expect a response in 28 working days. I've recently used it but I’m on day 20 so I don’t know if it’s going to be slower.

The gross amount you can pay in is up your relevant UK earnings, it may be your taxable income on your payslip if your tax affairs are simple. If you contributed £60k you’d likely exceed the Annual Allowance (separate limit) because you have to take account of the CS’s Pension Input Amount for your workplace pension. There are carry forward arrangements but you need to be aware in scenarios where these aren’t available.

Veteransaver

DE_612183 said:

I'm currently a higher tax rate payer - about £60k PA before tax.

I pay into a workplace pension - civil service.

I also have a Nest Pension - if I make a payment into this Nest automatically get me the 20% tax relief - but can I get an extra 20% ( to make up to 40% ) , and how do I do that, and also how much can I pay in?

I presume it's the difference between my £60k and £50270?

Presumably you pay into the workplace pension out of your salary? So depending on how much you currently pay then I'd expect that your actual taxable salary is less than 60k, so the amount of 40% tax relief is probably not as big as 60k less £50270

DE_612183

Veteransaver said:

DE_612183 said:

I'm currently a higher tax rate payer - about £60k PA before tax.

I pay into a workplace pension - civil service.

I also have a Nest Pension - if I make a payment into this Nest automatically get me the 20% tax relief - but can I get an extra 20% ( to make up to 40% ) , and how do I do that, and also how much can I pay in?

I presume it's the difference between my £60k and £50270?

Presumably you pay into the workplace pension out of your salary? So depending on how much you currently pay then I'd expect that your actual taxable salary is less than 60k, so the amount of 40% tax relief is probably not as big as 60k less £50270

Thanks, but I'd already taken the pension contributions of before the £60k figure was arrived at.

What happens @sarahspanges once you complete the form?

Sarahspangles

DE_612183 said:

Veteransaver said:

DE_612183 said:

I'm currently a higher tax rate payer - about £60k PA before tax.

I pay into a workplace pension - civil service.

I also have a Nest Pension - if I make a payment into this Nest automatically get me the 20% tax relief - but can I get an extra 20% ( to make up to 40% ) , and how do I do that, and also how much can I pay in?

I presume it's the difference between my £60k and £50270?

Presumably you pay into the workplace pension out of your salary? So depending on how much you currently pay then I'd expect that your actual taxable salary is less than 60k, so the amount of 40% tax relief is probably not as big as 60k less £50270

Thanks, but I'd already taken the pension contributions of before the £60k figure was arrived at.

What happens @sarahspanges once you complete the form?

Well eventually they will refund some of my tax because less of my income is now subject to higher rate tax.

For 2023/24’s contributions, I had to write with evidence, and yesterday got a notification there was a tax calculation letter in my personal tax account. This includes a link to provide bank details, I’m now awaiting a deposit.

I assume the same process will apply for 2024/25’s contributions, just a lot sooner. What I don’t know is whether the refund could be held back until the 2024/25 tax calculation is completed and a P800 is issued. I don’t think it will be, but I’m not holding my breath.

Albermarle

Sarahspangles said:

DE_612183 said:

Veteransaver said:

DE_612183 said:

I'm currently a higher tax rate payer - about £60k PA before tax.

I pay into a workplace pension - civil service.

I also have a Nest Pension - if I make a payment into this Nest automatically get me the 20% tax relief - but can I get an extra 20% ( to make up to 40% ) , and how do I do that, and also how much can I pay in?

I presume it's the difference between my £60k and £50270?

Presumably you pay into the workplace pension out of your salary? So depending on how much you currently pay then I'd expect that your actual taxable salary is less than 60k, so the amount of 40% tax relief is probably not as big as 60k less £50270

Thanks, but I'd already taken the pension contributions of before the £60k figure was arrived at.

What happens @sarahspanges once you complete the form?

Well eventually they will refund some of my tax because less of my income is now subject to higher rate tax.

For 2023/24’s contributions, I had to write with evidence, and yesterday got a notification there was a tax calculation letter in my personal tax account. This includes a link to provide bank details, I’m now awaiting a deposit.

I assume the same process will apply for 2024/25’s contributions, just a lot sooner. What I don’t know is whether the refund could be held back until the 2024/25 tax calculation is completed and a P800 is issued. I don’t think it will be, but I’m not holding my breath.

Normally if you report pension contributions for one tax year, HMRC assume that you will do the same in the following tax year, and adjust your tax code so you get more money in your take home pay ( and no rebate later of course). Did that not happen?
Interesting that you had to provide evidence. I just used to put the figure in my self assessment and that was that.

bjorn_toby_wilde

Albermarle said:

Sarahspangles said:

DE_612183 said:

Veteransaver said:

DE_612183 said:

I'm currently a higher tax rate payer - about £60k PA before tax.

I pay into a workplace pension - civil service.

I also have a Nest Pension - if I make a payment into this Nest automatically get me the 20% tax relief - but can I get an extra 20% ( to make up to 40% ) , and how do I do that, and also how much can I pay in?

I presume it's the difference between my £60k and £50270?

Presumably you pay into the workplace pension out of your salary? So depending on how much you currently pay then I'd expect that your actual taxable salary is less than 60k, so the amount of 40% tax relief is probably not as big as 60k less £50270

Thanks, but I'd already taken the pension contributions of before the £60k figure was arrived at.

What happens @sarahspanges once you complete the form?

Well eventually they will refund some of my tax because less of my income is now subject to higher rate tax.

For 2023/24’s contributions, I had to write with evidence, and yesterday got a notification there was a tax calculation letter in my personal tax account. This includes a link to provide bank details, I’m now awaiting a deposit.

I assume the same process will apply for 2024/25’s contributions, just a lot sooner. What I don’t know is whether the refund could be held back until the 2024/25 tax calculation is completed and a P800 is issued. I don’t think it will be, but I’m not holding my breath.

Normally if you report pension contributions for one tax year, HMRC assume that you will do the same in the following tax year, and adjust your tax code so you get more money in your take home pay ( and no rebate later of course). Did that not happen?
Interesting that you had to provide evidence. I just used to put the figure in my self assessment and that was that.

I’m not sure that they adjust your tax code for one off contributions. They didn’t change mine when I was making one off payments in the last couple of years before I retired.

Sarahspangles

Albermarle said:

Well eventually they will refund some of my tax because less of my income is now subject to higher rate tax.

For 2023/24’s contributions, I had to write with evidence, and yesterday got a notification there was a tax calculation letter in my personal tax account. This includes a link to provide bank details, I’m now awaiting a deposit.

I assume the same process will apply for 2024/25’s contributions, just a lot sooner. What I don’t know is whether the refund could be held back until the 2024/25 tax calculation is completed and a P800 is issued. I don’t think it will be, but I’m not holding my breath.

Normally if you report pension contributions for one tax year, HMRC assume that you will do the same in the following tax year, and adjust your tax code so you get more money in your take home pay ( and no rebate later of course). Did that not happen?
Interesting that you had to provide evidence. I just used to put the figure in my self assessment and that was that.

I didn’t make additional contributions prior to 2023/24 (though I probably should have) and they’ve issued the tax calculation for 23/24 so late in the current year that I think it’s too late for a new notice of coding to be issued before March payroll runs.

I’m intrigued what the notice of coding would look like, given that I contributed my entire salary, to the last penny, in 2023/24.

Sarahspangles

bjorn_toby_wilde said:

Albermarle said:

Sarahspangles said:

DE_612183 said:

Veteransaver said:

DE_612183 said:

I'm currently a higher tax rate payer - about £60k PA before tax.

I pay into a workplace pension - civil service.

I also have a Nest Pension - if I make a payment into this Nest automatically get me the 20% tax relief - but can I get an extra 20% ( to make up to 40% ) , and how do I do that, and also how much can I pay in?

I presume it's the difference between my £60k and £50270?

Presumably you pay into the workplace pension out of your salary? So depending on how much you currently pay then I'd expect that your actual taxable salary is less than 60k, so the amount of 40% tax relief is probably not as big as 60k less £50270

Thanks, but I'd already taken the pension contributions of before the £60k figure was arrived at.

What happens @sarahspanges once you complete the form?

Well eventually they will refund some of my tax because less of my income is now subject to higher rate tax.

For 2023/24’s contributions, I had to write with evidence, and yesterday got a notification there was a tax calculation letter in my personal tax account. This includes a link to provide bank details, I’m now awaiting a deposit.

I assume the same process will apply for 2024/25’s contributions, just a lot sooner. What I don’t know is whether the refund could be held back until the 2024/25 tax calculation is completed and a P800 is issued. I don’t think it will be, but I’m not holding my breath.

Normally if you report pension contributions for one tax year, HMRC assume that you will do the same in the following tax year, and adjust your tax code so you get more money in your take home pay ( and no rebate later of course). Did that not happen?
Interesting that you had to provide evidence. I just used to put the figure in my self assessment and that was that.

I’m not sure that they adjust your tax code for one off contributions. They didn’t change mine when I was making one off payments in the last couple of years before I retired.

One of the boxes to tick in the new online claim process asks if the contribution is a lump sum payment. I wasn’t clear what to tick. I contributed every month but some were much larger lumps.

FloraandFauna

I've just done this online - having finally twigged that being a Scottish taxpayer makes a difference. I managed to submit net contributions for the previous four tax years (will do 24-25 in April this year).

It was surprisingly simple, and they didn't want much detail. Although they did want proof of contributions for the year I made over £10k contributions (I wasn't close to that amount for the others). 

I have no idea if they will adjust my tax code for next year, or issue a refund, or how they may go about it - I'll wait my 28 days and see.

I've no idea what a 'one-off' payment is, and said so in the feedback form. If it's only paying once in the year, it doesn't apply. If it means making one noticeably larger lump payment in a particular year, it might. We'll find out.

Albermarle

bjorn_toby_wilde said:

Albermarle said:

Sarahspangles said:

DE_612183 said:

Veteransaver said:

DE_612183 said:

I'm currently a higher tax rate payer - about £60k PA before tax.

I pay into a workplace pension - civil service.

I also have a Nest Pension - if I make a payment into this Nest automatically get me the 20% tax relief - but can I get an extra 20% ( to make up to 40% ) , and how do I do that, and also how much can I pay in?

I presume it's the difference between my £60k and £50270?

Presumably you pay into the workplace pension out of your salary? So depending on how much you currently pay then I'd expect that your actual taxable salary is less than 60k, so the amount of 40% tax relief is probably not as big as 60k less £50270

Thanks, but I'd already taken the pension contributions of before the £60k figure was arrived at.

What happens @sarahspanges once you complete the form?

Well eventually they will refund some of my tax because less of my income is now subject to higher rate tax.

For 2023/24’s contributions, I had to write with evidence, and yesterday got a notification there was a tax calculation letter in my personal tax account. This includes a link to provide bank details, I’m now awaiting a deposit.

I assume the same process will apply for 2024/25’s contributions, just a lot sooner. What I don’t know is whether the refund could be held back until the 2024/25 tax calculation is completed and a P800 is issued. I don’t think it will be, but I’m not holding my breath.

Normally if you report pension contributions for one tax year, HMRC assume that you will do the same in the following tax year, and adjust your tax code so you get more money in your take home pay ( and no rebate later of course). Did that not happen?
Interesting that you had to provide evidence. I just used to put the figure in my self assessment and that was that.

I’m not sure that they adjust your tax code for one off contributions. They didn’t change mine when I was making one off payments in the last couple of years before I retired.

They did for me, so maybe it is a bit random. I had a tax code over £20K.