Are Voluntary Contributions Tax Deductible? i.e. can I ask for Income Tax Refund on Vol Contr?

TaxBackPlease · 18 March at 5:02PM

If I am working and paying Income Tax and I make the Voluntary Contributions to fill in some Gap years, let's say I am in the 20% tax bracket and pay £1000 for missing years, shouldn't I be owed £200 as tax refund. After all Contribution on the pay slip are before Income Tax and when I receive my pension I will be taxed. Any voluntary contribution I make is with income that has already been taxed.

If yes, how do I get the refund.

And if yes, this further benefit of paying past years is not being explained in the news outlets - Money Supermarket included.

jem16 · 18 March at 5:09PM

National Insurance contributions never give tax relief whether voluntary or mandatory. The fact that NI is always taken on gross salary does not reduce your taxable income.

Sarahspangles · 18 March at 5:10PM

It doesn’t work like that. You didn’t pay enough National Insurance (rather than income tax) in those years so you’re being given a chance to make the payment in arrears.