Claiming Pension Contribution refund 2024/25

tetrarch

My daughter has maxed out her pension contribution to cut her below the £100K 62% killer rate. Her salary was inflated on a one-off basis by a buyout/bonus

The contribution was made outside of her firm's salary sacrifice and the pension scheme does not apply the 20% contribution.She's been on PAYE and now and will now need to fill out a Self-assessment in order to get her tax back.

However, whilst applying for a self-assessment ot would appear that she has to wait for her P800 that "will be produced sometime over the summer months"

Is there any way to shortcut this process so that she can get her tax rebate more quickly?

Regards

Tet

Sarahspangles

There is a new process for this specific scenario, there’s no need to complete a Self Assessment return unless she does one for some other reason.

I posted my experience using the process here. What’s not yet clear is the turn round time for refunds. https://forums.moneysavingexpert.com/discussion/6586855/hmrc-claim-personal-pension-tax-relief-beta

Green_hopeful

I did mine by post last year. It took nine months and a lot of chasing. They said it was caused by the high value of the claim. It was £9000. Hopefully the new system is quicker. 

tetrarch

Sarahspangles said:

There is a new process for this specific scenario, there’s no need to complete a Self Assessment return unless she does one for some other reason.

I posted my experience using the process here. What’s not yet clear is the turn round time for refunds. https://forums.moneysavingexpert.com/discussion/6586855/hmrc-claim-personal-pension-tax-relief-beta

Thank you, very much appreciated. I have pointed my youngest in that direction

I'll revert here with any progress (or lack thereof)

Regards

Tet

DRS1

The contribution was made outside of her firm's salary sacrifice and the pension scheme does not apply the 20% contribution.

What do you mean by the bit in italics?  The sort of contribution you report on the page linked by @Sarahspangles is a relief at source contribution where the pension scheme adds 25% to the net contribution made and then you report the grossed up amount (so you contribute £1000, scheme adds £250 and you report a gross contribution of £1250).  If the scheme has not added anything then it may not be a relief at source contribution (or the scheme made a mistake).

molerat

This scenario has been seen on here a few times and it has been an uphill struggle to get HMRC to recognise that there is any refund due other than the additional tax rates.  There is no paperwork that covers it as it "should" only be either a net pay through the employer or RAS scheme where at least basic rate tax is automatically covered.  The only recommended way of making additional contributions into these schemes is through payroll, cuts out a load of stress.

Sarahspangles

DRS1 said:

The contribution was made outside of her firm's salary sacrifice and the pension scheme does not apply the 20% contribution.

What do you mean by the bit in italics?  The sort of contribution you report on the page linked by @Sarahspangles is a relief at source contribution where the pension scheme adds 25% to the net contribution made and then you report the grossed up amount (so you contribute £1000, scheme adds £250 and you report a gross contribution of £1250).  If the scheme has not added anything then it may not be a relief at source contribution (or the scheme made a mistake).

I assume the scenario you mean is one where a lump sum is paid to a workplace pension without relief being given via salary sacrifice, net pay or relief at source.

I actually think there was an option to use the form for this scenario - but it’s a while now since I used it.

DRS1

Sarahspangles said:

DRS1 said:

The contribution was made outside of her firm's salary sacrifice and the pension scheme does not apply the 20% contribution.

What do you mean by the bit in italics?  The sort of contribution you report on the page linked by @Sarahspangles is a relief at source contribution where the pension scheme adds 25% to the net contribution made and then you report the grossed up amount (so you contribute £1000, scheme adds £250 and you report a gross contribution of £1250).  If the scheme has not added anything then it may not be a relief at source contribution (or the scheme made a mistake).

I assume the scenario you mean is one where a lump sum is paid to a workplace pension without relief being given via salary sacrifice, net pay or relief at source.

I actually think there was an option to use the form for this scenario - but it’s a while now since I used it.

I stand corrected.  I have never used the form myself.

Sarahspangles

DRS1 said:

Sarahspangles said:

DRS1 said:

The contribution was made outside of her firm's salary sacrifice and the pension scheme does not apply the 20% contribution.

What do you mean by the bit in italics?  The sort of contribution you report on the page linked by @Sarahspangles is a relief at source contribution where the pension scheme adds 25% to the net contribution made and then you report the grossed up amount (so you contribute £1000, scheme adds £250 and you report a gross contribution of £1250).  If the scheme has not added anything then it may not be a relief at source contribution (or the scheme made a mistake).

I assume the scenario you mean is one where a lump sum is paid to a workplace pension without relief being given via salary sacrifice, net pay or relief at source.

I actually think there was an option to use the form for this scenario - but it’s a while now since I used it.

I stand corrected.  I have never used the form myself.

Hopefully someone will confirm because I know it’s been challenging for people to claim this. Because to claim either you have to provide proof of contribution it’s a similar process.

tetrarch

It's a direct contribution to the pension fund without any kind of relief applied.

I'll revert with success or otherwise

Regards

Tet

c_beam

@tetrarch interested to see how you/your daughter get on.  I made a direct contribution to my workplace scheme (Aviva) for similar reasons after leaving the company and receiving a one off pay out.  In my case it was grossed up for basic rate relief by Aviva. I used the HMRC form highlighted by @Sarahspangles to claim higher rate relief on 26th February.  I received an acknowledgement that estimated I would hear back in 28 working days but I called HMRC on 05/03 to check I'd followed the right process and the agent told me he had never heard of the form and I would have to do a self assessment return.  After some discussion he suggested I wait to see what happens before doing a self assessment (!).  28 days passed so I checked using one of the other HMRC "when should I expect a reply" tools and it suggested April 10th.  That date passed so I called them again today and the agent confirmed the form had been received but no one had looked at it yet.  She put my form into the worklist (!? not sure I'm using the right term here) and gave me a new target date of June 24th and told me that, since the payment relates to the last tax year, I will be given the option of receiving it as a lump sum into my bank account.