Adding to old workplace pension and claiming tax relief

Bookle

I want continue to pay into my old workplace DC plan now that I left the company at end of July.
I am still earning a salary and paying PAYE from my old company - but have no longer have the  option to add anything to my old workplace pension (long story).
I have already made contributions this FY via normal company salary sacrifice up to my leaving date end of July. 

I would like to maximise my contributions from existing cash savings, which I know is limited by the salary and £60kA etc
My old workplace provider does allow additional payments but will not automatically claim even basic tax relief - so its 100% up to me to claim any tax relief from HMRC.

My questions is, how do I efficiently claim tax relief both at basic and higher rate?

I took the HMRC online form as far as I could but it seems that it only supports a claim for either workplace or private pension and given I've already had some tax relief this year on my workplace plan, so how do I separate contributions to same scheme after made after leaving in same tax year?
Unless of course my old workplace pension is now (re)considered by HMRC as a personal pension now that I've left the company?

Thoughts and experiences very welcome

Marcon

Bookle said:

I want continue to pay into my old workplace DC plan now that I left the company at end of July.
I am still earning a salary and paying PAYE from my old company - but have no longer have the  option to add anything to my old workplace pension (long story).
I have already made contributions this FY via normal company salary sacrifice up to my leaving date end of July. 

I would like to maximise my contributions from existing cash savings, which I know is limited by the salary and £60kA etc
My old workplace provider does allow additional payments but will not automatically claim even basic tax relief - so its 100% up to me to claim any tax relief from HMRC.

My questions is, how do I efficiently claim tax relief both at basic and higher rate?

I took the HMRC online form as far as I could but it seems that it only supports a claim for either workplace or private pension and given I've already had some tax relief this year on my workplace plan, so how do I separate contributions to same scheme after made after leaving in same tax year?
Unless of course is my old workplace pension is now (re)considered by HMRC as a personal pension now that I've left the company?

Thoughts and experiences very welcome

What exactly is your old workplace pension - could you give the full title (which should, with luck, give that information...) and possibly the first line or two from any explanatory literature?

DRS1

I think the online form is just for employee (relief at source) contributions and does not cover salary sacrifice contributions so I believe you just ignore them - don't mention them on the form.

You may be better opening a new personal pension which will reclaim the 20% for you.  I believe contributions made by the employee where the scheme has not reclaimed the 20% can be confusing for HMRC

Albermarle

My old workplace provider does allow additional payments but will not automatically claim even basic tax relief - so its 100% up to me to claim any tax relief from HMRC.

If this really is the case, there have been threads on here from people in a similar situation, having a lot of trouble getting HMRC to understand, as it is a non standard situation.

As above it will most likely be much simpler to open a new separate pension ( very easy online) and make any new contributions to that.

Bookle

Albermarle said:

My old workplace provider does allow additional payments but will not automatically claim even basic tax relief - so its 100% up to me to claim any tax relief from HMRC.

If this really is the case, there have been threads on here from people in a similar situation, having a lot of trouble getting HMRC to understand, as it is a non standard situation.

As above it will most likely be much simpler to open a new separate pension ( very easy online) and make any new contributions to that.

Thanks for advice.
I'd really prefer to add to my old DC workplace rather than start anew - for many reasons as the plan is doing very well, its already tailored investment risk towards my retirement age (only 20 months away) and I like having it all in one place.

Could I just call or write to HMRC or add as comment within the form to explain the non standard situation on the basic 20%?
maybe being naïve, but it shouldn't be so hard for them?

I forgot to mention, my DC provider (Fidelity) provides some kind of letter/ certificate to give to HMRC for tax relief purposes. I've still to make the actual payment

Bookle

DRS1 said:

I think the online form is just for employee (relief at source) contributions and does not cover salary sacrifice contributions so I believe you just ignore them - don't mention them on the form.

You may be better opening a new personal pension which will reclaim the 20% for you.  I believe contributions made by the employee where the scheme has not reclaimed the 20% can be confusing for HMRC

That would be v. nice and neat - so only include my additional contributions in claim form and leave out previous company / SS contributions.
I'll have letter/cert from pension provider showing the addition payment and (hopefully) that the 20% has not yet been claimed

Albermarle

Bookle said:

Albermarle said:

My old workplace provider does allow additional payments but will not automatically claim even basic tax relief - so its 100% up to me to claim any tax relief from HMRC.

If this really is the case, there have been threads on here from people in a similar situation, having a lot of trouble getting HMRC to understand, as it is a non standard situation.

As above it will most likely be much simpler to open a new separate pension ( very easy online) and make any new contributions to that.

Thanks for advice.
I'd really prefer to add to my old DC workplace rather than start anew - for many reasons as the plan is doing very well, its already tailored investment risk towards my retirement age (only 20 months away) and I like having it all in one place.

Could I just call or write to HMRC or add as comment within the form to explain the non standard situation on the basic 20%?
maybe being naïve, but it shouldn't be so hard for them?

I forgot to mention, my DC provider (Fidelity) provides some kind of letter/ certificate to give to HMRC for tax relief purposes. I've still to make the actual payment

I think the problem is that normally people only contact HMRC, if they wish to claim higher rate relief ( 40% taxpayers) on a relief at source pension ( where the provider has already claimed the basic rate relief).
From other threads the call centre people at HMRC assume that is what you are contacting them for and can not understand that you want to claim the basic rate as well. It is possible they have never come across it before ( many of them are not that experienced).
I remember one thread where it took a couple of years and numerous contacts to sort out.
You are welcome to give it a go though.

hugheskevi

Bookle said:

Could I just call or write to HMRC or add as comment within the form to explain the non standard situation on the basic 20%?
maybe being naïve, but it shouldn't be so hard for them?

If you make the claim via self-assessment it should be quick and straightforward, as self-assessment has a category for this type of contribution.

If you try writing or calling, you are likely to go through multiple HMRC staff who do not understand the process and try to process it as a relief at source claim. Eventually you will get the correct result, but it is unlikely to be quick or efficient.

Albermarle

hugheskevi said:

Bookle said:

Could I just call or write to HMRC or add as comment within the form to explain the non standard situation on the basic 20%?
maybe being naïve, but it shouldn't be so hard for them?

If you make the claim via self-assessment it should be quick and straightforward, as self-assessment has a category for this type of contribution.

If you try writing or calling, you are likely to go through multiple HMRC staff who do not understand the process and try to process it as a relief at source claim. Eventually you will get the correct result, but it is unlikely to be quick or efficient.

I did not know that, every day is a school day !

Marcon

Albermarle said:

hugheskevi said:

Bookle said:

Could I just call or write to HMRC or add as comment within the form to explain the non standard situation on the basic 20%?
maybe being naïve, but it shouldn't be so hard for them?

If you make the claim via self-assessment it should be quick and straightforward, as self-assessment has a category for this type of contribution.

If you try writing or calling, you are likely to go through multiple HMRC staff who do not understand the process and try to process it as a relief at source claim. Eventually you will get the correct result, but it is unlikely to be quick or efficient.

I did not know that, every day is a school day !

In case anyone needs help to wade through their SA form in respect of such a contribution, here's the illustrated guide:

First tailor your return:




and then head for the section 'Paying into registered pension schemes:

Bookle

Good to know via self assesment is an option.
Would much rather avoid that route as the one time I had to do it the past it was major pain in the butt.

If I can do it via the (I believe, new for this year) pension tax relief claim form, I will try that first.
If I absolutely have to via SA, I will.