Informing HMRC of SIPP contibutions

Jami74

I need to inform HMRC of my SIPP contributions for 24-25 tax year for the purpose of claiming tax relief as a a higher rate payer.

For my gross taxable income, is it okay if the interest earned on my savings change after the banks report it to them?

The reason I ask is that I know what interest I think I've earned based on my records, but am aware that number might change after the banks have reported to HMRC (depending on if I've understood the tax rules around all of the switches, rewards, bonuses etc). If there is a difference I would expect it to be less than £200 either way.

Dazed_and_C0nfused

Jami74 said:

I need to inform HMRC of my SIPP contributions for 24-25 tax year for the purpose of claiming tax relief as a a higher rate payer.

For my gross taxable income, is it okay if the interest earned on my savings change after the banks report it to them?

The reason I ask is that I know what interest I think I've earned based on my records, but am aware that number might change after the banks have reported to HMRC (depending on if I've understood the tax rules around all of the switches, rewards, bonuses etc). If there is a difference I would expect it to be less than £200 either way.

In what sense are you telling HMRC about the interest?

On a form (if so which form), a letter, a phone call, a tax return?

Jami74

Letter.

I cannot do it via their online form because I get an error message saying organisations cannot access this form (I have reported it and a quick Google suggests it might be a glitch because I've previously done self assessments, but no longer required since 2020).

I have found a template online that suggests something like "I would like to claim higher rate tax relief on contributions of £xxx into my SIPP held with xxx company for year xx-xx. My gross income for that year is £xxx.

Now you've asked, I'm thinking I probably don't need to tell them what my gross income is as they'll have that information already. They've estimated the savings interest based on the previous year. 

molerat

Remember you have to tell them the gross contribution you made, your actual contribution plus the 25% tax uplift applied by the provider.

Dazed_and_C0nfused

Jami74 said:

Letter.

I cannot do it via their online form because I get an error message saying organisations cannot access this form (I have reported it and a quick Google suggests it might be a glitch because I've previously done self assessments, but no longer required since 2020).

I have found a template online that suggests something like "I would like to claim higher rate tax relief on contributions of £xxx into my SIPP held with xxx company for year xx-xx. My gross income for that year is £xxx.

Now you've asked, I'm thinking I probably don't need to tell them what my gross income is as they'll have that information already. They've estimated the savings interest based on the previous year. 

Make sure you are telling them about the gross contribution (and spell it out that's it gross, inclusive of the basic rate relief).

If you know the bank interest details for 2024-25 you could provide that info (they will doubtless want it per bank account, not just a total figure) as otherwise they will need to wait for the banks to report the interest and banks have until 30 June to do that.

Jami74

Thank you both. Yes I understood about the gross contribution bit, my contribution plus the 25% tax relief.

I think I am happy to wait for the banks to report the interest so will include a total earned from employment gross figure only.