Paying additional funds into pension this month.

Dazed_and_C0nfused

FloraandFauna said:

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.

What do you by net contributions?

HMRC aren't interested in net pay contributions as you always receive the maximum relief via your pay.

For 99.9% of people it would just be relief at source contributions that they need to know about.

You are never given higher rate tax relief for one year in the tax code of a different tax year.  If your tax liability for previous tax years is impacted then you will get calculations (usually a P800) for those years.  These might show a refund or reduction in tax owed, depends what the situation was before your claim.

FloraandFauna

Dazed_and_C0nfused said:

FloraandFauna said:

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.

What do you by net contributions?

HMRC aren't interested in net pay contributions as you always receive the maximum relief via your pay.

For 99.9% of people it would just be relief at source contributions that they need to know about.

You are never given higher rate tax relief for one year in the tax code of a different tax year.  If your tax liability for previous tax years is impacted then you will get calculations (usually a P800) for those years.  These might show a refund or reduction in tax owed, depends what the situation was before your claim.

Well, it's entirely possible I've boobed somewhere, so some added detail.

I have a DB through work. I'm assuming that's irrelevant for these purposes since, as you say, that's dealt with by payroll. The contributions I reported to HMRC were those to a personal SIPP I set up with Vanguard. But because I'm in Scotland, and into the higher rate band even after DB contributions taken into account, I assume that some further SIPP adjustment for the 21% and the 40% rates could be asked for.

The HMRC form specifically asks for net contributions for that SIPP, not gross. And allow you to do so for the last four tax years (not counting current).

Thank for you the info re previous/current tax year calculations. Since I've not submitted any information for 24/25 yet, I'll wait and see how they decide to deal with the previous years.

Dazed_and_C0nfused

FloraandFauna said:

Dazed_and_C0nfused said:

FloraandFauna said:

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.

What do you by net contributions?

HMRC aren't interested in net pay contributions as you always receive the maximum relief via your pay.

For 99.9% of people it would just be relief at source contributions that they need to know about.

You are never given higher rate tax relief for one year in the tax code of a different tax year.  If your tax liability for previous tax years is impacted then you will get calculations (usually a P800) for those years.  These might show a refund or reduction in tax owed, depends what the situation was before your claim.

Well, it's entirely possible I've boobed somewhere, so some added detail.

I have a DB through work. I'm assuming that's irrelevant for these purposes since, as you say, that's dealt with by payroll. The contributions I reported to HMRC were those to a personal SIPP I set up with Vanguard. But because I'm in Scotland, and into the higher rate band even after DB contributions taken into account, I assume that some further SIPP adjustment for the 21% and the 40% rates could be asked for.

The HMRC form specifically asks for net contributions for that SIPP, not gross. And allow you to do so for the last four tax years (not counting current).

Thank for you the info re previous/current tax year calculations. Since I've not submitted any information for 24/25 yet, I'll wait and see how they decide to deal with the previous years.

It seems oddly worded but personal contributions to a SIPP,  personal or workplace pension are really what it seems to for so you should be fine

QrizB

FloraandFauna said:

What do you by net contributions?

The contributions I reported to HMRC were those to a personal SIPP I set up with Vanguard. But because I'm in Scotland, and into the higher rate band even after DB contributions taken into account, I assume that some further SIPP adjustment for the 21% and the 40% rates could be asked for.

OK so far, but what do you mean by your last phrase (bolded)?

If you contributed £8k to a RAS pension scheme and received £2k tax relief, your net contribution is £10k. As long as you reported that, you're fine. Being a 21% or 40% taxpayer isn't relevant at that stage.

You'll receive any additional tax relief from HMRC, not into your SIPP.

FloraandFauna

QrizB said:

FloraandFauna said:

What do you by net contributions?

The contributions I reported to HMRC were those to a personal SIPP I set up with Vanguard. But because I'm in Scotland, and into the higher rate band even after DB contributions taken into account, I assume that some further SIPP adjustment for the 21% and the 40% rates could be asked for.

OK so far, but what do you mean by your last phrase (bolded)?

If you contributed £8k to a RAS pension scheme and received £2k tax relief, your net contribution is £10k. As long as you reported that, you're fine. Being a 21% or 40% taxpayer isn't relevant at that stage.

You'll receive any additional tax relief from HMRC, not into your SIPP.

Whoa tiger! I have boobed then? I thought the amount I contributed was the 'net', so the £8k in your example, and the total increase to the SIPP as a result of that contribution is the 'gross', the £10k? The form asked for net, so I reported only what I contributed, not the total including the tax relief.

Oh well, I included the Vanguard statement (which is gross contributions only) for them, so some bright spark will work it out, I'm sure.

And yes, I'm getting the picture that it will be tax relief from HMRC to me, and it will then be up to me to put in the SIPP. Or blow it on a course in tax procedures. The last sentence was only my really lazy way of saying I haven't worked out exactly what impact contributions from the last four years might have on my marginal rates/tax codes, as I have dyscalculia and couldn't face it.

QrizB

FloraandFauna said:

QrizB said:

FloraandFauna said:

What do you by net contributions?

The contributions I reported to HMRC were those to a personal SIPP I set up with Vanguard. But because I'm in Scotland, and into the higher rate band even after DB contributions taken into account, I assume that some further SIPP adjustment for the 21% and the 40% rates could be asked for.

OK so far, but what do you mean by your last phrase (bolded)?

If you contributed £8k to a RAS pension scheme and received £2k tax relief, your net contribution is £10k. As long as you reported that, you're fine. Being a 21% or 40% taxpayer isn't relevant at that stage.

You'll receive any additional tax relief from HMRC, not into your SIPP.

Whoa tiger! I have boobed then? I thought the amount I contributed was the 'net', so the £8k in your example, and the total increase to the SIPP as a result of that contribution is the 'gross', the £10k? The form asked for net, so I reported only what I contributed, not the total including the tax relief.

I could be the one in the wrong here, so don't panic.

I do mine via Self Assessment, and the box on the SA form asks for the SIM including tax relief.

I'm sure it'll all come out in the wash.