Adding to old workplace pension from savings and claiming tax relief

Dazed_and_C0nfused

Bookle said:

Thanks again for all the expertise.

I'm 100% fine with any/all tax relief coming direct to me - as long as it does!
I was just surprised to have that freedom given the reasons you get the tax relief for to start with!

I'll write to HMRC with all the details as outlined in the linked thread and then follow up with phone calls (v. likely multiple!)
Failing that. will be SA.

Overall the communication (or lack of) on what HMRC decided, why, how much I'm entitled to and what's next is so very disappointing.
I've literally received nothing other than, 'your tax code has changed' - which I guess is a start.

Will report back just in case anyone might find the information/experience valuable.
Thanks again everyone.

If you have received that message then you should be able to see details of your new tax code in your Personal Tax Account.

That will show how the code has been calculated and if it includes an extra allowance called personal pension relief, or maybe personal pension payments, then that is a sure sign it's all gone wrong at HMRC's end as that is how HMRC give additional relief for "relief at source" contributions.

Bookle

Dazed_and_C0nfused said:

Bookle said:

Thanks again for all the expertise.

I'm 100% fine with any/all tax relief coming direct to me - as long as it does!
I was just surprised to have that freedom given the reasons you get the tax relief for to start with!

I'll write to HMRC with all the details as outlined in the linked thread and then follow up with phone calls (v. likely multiple!)
Failing that. will be SA.

Overall the communication (or lack of) on what HMRC decided, why, how much I'm entitled to and what's next is so very disappointing.
I've literally received nothing other than, 'your tax code has changed' - which I guess is a start.

Will report back just in case anyone might find the information/experience valuable.
Thanks again everyone.

If you have received that message then you should be able to see details of your new tax code in your Personal Tax Account.

That will show how the code has been calculated and if it includes an extra allowance called personal pension relief, or maybe personal pension payments, then that is a sure sign it's all gone wrong at HMRC's end as that is how HMRC give additional relief for "relief at source" contributions.

When I log in and look at tax code explanation,  it tells me 'you now get personal pension payments worth £3774'

Theres no calculation or explanation behind it.
If I click 'how we calculated tax code' it simple shows me 'personal pension payments = £3774'

If I go into my PAYE estimate for this tax year, it's the only place that shows the additional personal contribution to my pension that I am claiming tax relief on.
It then indicates tax relief resulting in a tax savings of £1584.

There is nothing mentioned about basic or higher rate relief.
There is no calculation or explanation.
Nothing in my messages either
It does show my submitted PPR1 form as 'complete' but nothing more.

Overall, I am expecting over £10k in basic tax relief and over £5k in higher rate - according to various online calculators.
I am also very confident I am within all the HMRC limits / rules etc.

It seems the basic rate relief has not been included, but higher rate has been.

I also wonder if the higher rate tax relief is based on on what I've paid so far this tax year over 6 months and not 12, is paid back over more than one tax year or similar?

Dazed_and_C0nfused

Bookle said:

Dazed_and_C0nfused said:

Bookle said:

Thanks again for all the expertise.

I'm 100% fine with any/all tax relief coming direct to me - as long as it does!
I was just surprised to have that freedom given the reasons you get the tax relief for to start with!

I'll write to HMRC with all the details as outlined in the linked thread and then follow up with phone calls (v. likely multiple!)
Failing that. will be SA.

Overall the communication (or lack of) on what HMRC decided, why, how much I'm entitled to and what's next is so very disappointing.
I've literally received nothing other than, 'your tax code has changed' - which I guess is a start.

Will report back just in case anyone might find the information/experience valuable.
Thanks again everyone.

If you have received that message then you should be able to see details of your new tax code in your Personal Tax Account.

That will show how the code has been calculated and if it includes an extra allowance called personal pension relief, or maybe personal pension payments, then that is a sure sign it's all gone wrong at HMRC's end as that is how HMRC give additional relief for "relief at source" contributions.

When I log in and look at tax code explanation,  it tells me 'you now get personal pension payments worth £3774'

Theres no calculation or explanation behind it.
If I click 'how we calculated tax code' it simple shows me 'personal pension payments = £3774'

If I go into my PAYE estimate for this tax year, it's the only place that shows the additional personal contribution to my pension that I am claiming tax relief on.
It then indicates tax relief resulting in a tax savings of £1584.

There is nothing mentioned about basic or higher rate relief.
There is no calculation or explanation.
Nothing in my messages either
It does show my submitted PPR1 form as 'complete' but nothing more.

Overall, I am expecting over £10k in basic tax relief and over £5k in higher rate - according to various online calculators.
I am also very confident I am within all the HMRC limits / rules etc.

It seems the basic rate relief has not been included, but higher rate has been.

I also wonder if the higher rate tax relief is based on on what I've paid so far this tax year over 6 months and not 12, is paid back over more than one tax year or similar?

Are you a Scottish resident for tax purposes?

Irrespective of that though that tax code change is completely wrong, you aren't entitled to higher rate tax relief you have been given as you didn't make a relief at source contribution.

You need to go back to HMRC and get them to understand the type of contribution you have made.

Bookle

Dazed_and_C0nfused said:

Bookle said:

Dazed_and_C0nfused said:

Bookle said:

Thanks again for all the expertise.

I'm 100% fine with any/all tax relief coming direct to me - as long as it does!
I was just surprised to have that freedom given the reasons you get the tax relief for to start with!

I'll write to HMRC with all the details as outlined in the linked thread and then follow up with phone calls (v. likely multiple!)
Failing that. will be SA.

Overall the communication (or lack of) on what HMRC decided, why, how much I'm entitled to and what's next is so very disappointing.
I've literally received nothing other than, 'your tax code has changed' - which I guess is a start.

Will report back just in case anyone might find the information/experience valuable.
Thanks again everyone.

If you have received that message then you should be able to see details of your new tax code in your Personal Tax Account.

That will show how the code has been calculated and if it includes an extra allowance called personal pension relief, or maybe personal pension payments, then that is a sure sign it's all gone wrong at HMRC's end as that is how HMRC give additional relief for "relief at source" contributions.

When I log in and look at tax code explanation,  it tells me 'you now get personal pension payments worth £3774'

Theres no calculation or explanation behind it.
If I click 'how we calculated tax code' it simple shows me 'personal pension payments = £3774'

If I go into my PAYE estimate for this tax year, it's the only place that shows the additional personal contribution to my pension that I am claiming tax relief on.
It then indicates tax relief resulting in a tax savings of £1584.

There is nothing mentioned about basic or higher rate relief.
There is no calculation or explanation.
Nothing in my messages either
It does show my submitted PPR1 form as 'complete' but nothing more.

Overall, I am expecting over £10k in basic tax relief and over £5k in higher rate - according to various online calculators.
I am also very confident I am within all the HMRC limits / rules etc.

It seems the basic rate relief has not been included, but higher rate has been.

I also wonder if the higher rate tax relief is based on on what I've paid so far this tax year over 6 months and not 12, is paid back over more than one tax year or similar?

Are you a Scottish resident for tax purposes?

Irrespective of that though that tax code change is completely wrong, you aren't entitled to higher rate tax relief you have been given as you didn't make a relief at source contribution.

You need to go back to HMRC and get them to understand the type of contribution you have made.

Yes, in Scotland.

So are you saying its only basic tax relief that's applicable when not relief at source?
That seems unfair.

Agree the tax code change seems plain wrong, but without an explanation its hard to rationalise.

Agree, my plan is to call HMRC and persist until I get someone who fully understands the contribution.
Will report back.

DRS1

Bookle said:

Dazed_and_C0nfused said:

Bookle said:

Dazed_and_C0nfused said:

Bookle said:

Thanks again for all the expertise.

I'm 100% fine with any/all tax relief coming direct to me - as long as it does!
I was just surprised to have that freedom given the reasons you get the tax relief for to start with!

I'll write to HMRC with all the details as outlined in the linked thread and then follow up with phone calls (v. likely multiple!)
Failing that. will be SA.

Overall the communication (or lack of) on what HMRC decided, why, how much I'm entitled to and what's next is so very disappointing.
I've literally received nothing other than, 'your tax code has changed' - which I guess is a start.

Will report back just in case anyone might find the information/experience valuable.
Thanks again everyone.

If you have received that message then you should be able to see details of your new tax code in your Personal Tax Account.

That will show how the code has been calculated and if it includes an extra allowance called personal pension relief, or maybe personal pension payments, then that is a sure sign it's all gone wrong at HMRC's end as that is how HMRC give additional relief for "relief at source" contributions.

When I log in and look at tax code explanation,  it tells me 'you now get personal pension payments worth £3774'

Theres no calculation or explanation behind it.
If I click 'how we calculated tax code' it simple shows me 'personal pension payments = £3774'

If I go into my PAYE estimate for this tax year, it's the only place that shows the additional personal contribution to my pension that I am claiming tax relief on.
It then indicates tax relief resulting in a tax savings of £1584.

There is nothing mentioned about basic or higher rate relief.
There is no calculation or explanation.
Nothing in my messages either
It does show my submitted PPR1 form as 'complete' but nothing more.

Overall, I am expecting over £10k in basic tax relief and over £5k in higher rate - according to various online calculators.
I am also very confident I am within all the HMRC limits / rules etc.

It seems the basic rate relief has not been included, but higher rate has been.

I also wonder if the higher rate tax relief is based on on what I've paid so far this tax year over 6 months and not 12, is paid back over more than one tax year or similar?

Are you a Scottish resident for tax purposes?

Irrespective of that though that tax code change is completely wrong, you aren't entitled to higher rate tax relief you have been given as you didn't make a relief at source contribution.

You need to go back to HMRC and get them to understand the type of contribution you have made.

Yes, in Scotland.

So are you saying its only basic tax relief that's applicable when not relief at source?
That seems unfair.

Agree the tax code change seems plain wrong, but without an explanation its hard to rationalise.

Agree, my plan is to call HMRC and persist until I get someone who fully understands the contribution.
Will report back.

I don't think that is what he is saying.  I think he is saying they are giving you tax relief the wrong way and for the wrong amount.

Your contribution should be treated like a contribution to an old retirement annuity contract.  Sadly it has been so long since I did that that I have forgotten how it worked.  Maybe I got a cheque with a tax refund?

Dazed_and_C0nfused

Bookle said:

Dazed_and_C0nfused said:

Bookle said:

Dazed_and_C0nfused said:

Bookle said:

Thanks again for all the expertise.

I'm 100% fine with any/all tax relief coming direct to me - as long as it does!
I was just surprised to have that freedom given the reasons you get the tax relief for to start with!

I'll write to HMRC with all the details as outlined in the linked thread and then follow up with phone calls (v. likely multiple!)
Failing that. will be SA.

Overall the communication (or lack of) on what HMRC decided, why, how much I'm entitled to and what's next is so very disappointing.
I've literally received nothing other than, 'your tax code has changed' - which I guess is a start.

Will report back just in case anyone might find the information/experience valuable.
Thanks again everyone.

If you have received that message then you should be able to see details of your new tax code in your Personal Tax Account.

That will show how the code has been calculated and if it includes an extra allowance called personal pension relief, or maybe personal pension payments, then that is a sure sign it's all gone wrong at HMRC's end as that is how HMRC give additional relief for "relief at source" contributions.

When I log in and look at tax code explanation,  it tells me 'you now get personal pension payments worth £3774'

Theres no calculation or explanation behind it.
If I click 'how we calculated tax code' it simple shows me 'personal pension payments = £3774'

If I go into my PAYE estimate for this tax year, it's the only place that shows the additional personal contribution to my pension that I am claiming tax relief on.
It then indicates tax relief resulting in a tax savings of £1584.

There is nothing mentioned about basic or higher rate relief.
There is no calculation or explanation.
Nothing in my messages either
It does show my submitted PPR1 form as 'complete' but nothing more.

Overall, I am expecting over £10k in basic tax relief and over £5k in higher rate - according to various online calculators.
I am also very confident I am within all the HMRC limits / rules etc.

It seems the basic rate relief has not been included, but higher rate has been.

I also wonder if the higher rate tax relief is based on on what I've paid so far this tax year over 6 months and not 12, is paid back over more than one tax year or similar?

Are you a Scottish resident for tax purposes?

Irrespective of that though that tax code change is completely wrong, you aren't entitled to higher rate tax relief you have been given as you didn't make a relief at source contribution.

You need to go back to HMRC and get them to understand the type of contribution you have made.

Yes, in Scotland.

So are you saying its only basic tax relief that's applicable when not relief at source?
That seems unfair.

Agree the tax code change seems plain wrong, but without an explanation its hard to rationalise.

Agree, my plan is to call HMRC and persist until I get someone who fully understands the contribution.
Will report back.

No, not at all, you've just chosen an (unusual) method of contributing that constantly seems to stump HMRC staff.

Your tax code has been updated with something that simply doesn't apply to you, as I understand it personal pension relief should only be used for relief at source contributions, where you need to get the benefit of relief due above the basic rate band.  It isn't relevant for your type of gross contribution.

There is some information here.

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye130025

Dazed_and_C0nfused

DRS1 said:

Bookle said:

Dazed_and_C0nfused said:

Bookle said:

Dazed_and_C0nfused said:

Bookle said:

Thanks again for all the expertise.

I'm 100% fine with any/all tax relief coming direct to me - as long as it does!
I was just surprised to have that freedom given the reasons you get the tax relief for to start with!

I'll write to HMRC with all the details as outlined in the linked thread and then follow up with phone calls (v. likely multiple!)
Failing that. will be SA.

Overall the communication (or lack of) on what HMRC decided, why, how much I'm entitled to and what's next is so very disappointing.
I've literally received nothing other than, 'your tax code has changed' - which I guess is a start.

Will report back just in case anyone might find the information/experience valuable.
Thanks again everyone.

If you have received that message then you should be able to see details of your new tax code in your Personal Tax Account.

That will show how the code has been calculated and if it includes an extra allowance called personal pension relief, or maybe personal pension payments, then that is a sure sign it's all gone wrong at HMRC's end as that is how HMRC give additional relief for "relief at source" contributions.

When I log in and look at tax code explanation,  it tells me 'you now get personal pension payments worth £3774'

Theres no calculation or explanation behind it.
If I click 'how we calculated tax code' it simple shows me 'personal pension payments = £3774'

If I go into my PAYE estimate for this tax year, it's the only place that shows the additional personal contribution to my pension that I am claiming tax relief on.
It then indicates tax relief resulting in a tax savings of £1584.

There is nothing mentioned about basic or higher rate relief.
There is no calculation or explanation.
Nothing in my messages either
It does show my submitted PPR1 form as 'complete' but nothing more.

Overall, I am expecting over £10k in basic tax relief and over £5k in higher rate - according to various online calculators.
I am also very confident I am within all the HMRC limits / rules etc.

It seems the basic rate relief has not been included, but higher rate has been.

I also wonder if the higher rate tax relief is based on on what I've paid so far this tax year over 6 months and not 12, is paid back over more than one tax year or similar?

Are you a Scottish resident for tax purposes?

Irrespective of that though that tax code change is completely wrong, you aren't entitled to higher rate tax relief you have been given as you didn't make a relief at source contribution.

You need to go back to HMRC and get them to understand the type of contribution you have made.

Yes, in Scotland.

So are you saying its only basic tax relief that's applicable when not relief at source?
That seems unfair.

Agree the tax code change seems plain wrong, but without an explanation its hard to rationalise.

Agree, my plan is to call HMRC and persist until I get someone who fully understands the contribution.
Will report back.

I don't think that is what he is saying.  I think he is saying they are giving you tax relief the wrong way and for the wrong amount.

Your contribution should be treated like a contribution to an old retirement annuity contract.  Sadly it has been so long since I did that that I have forgotten how it worked.  Maybe I got a cheque with a tax refund?

Spot on.

If you have PAYE income then relief can be claimed during the year the contribution was paid in and it would be (provisionally) given via a new tax code.

The op hasn't quite got there yet and even once that does happen it's only provisional the final position will be established as part of HMRC annual review. Assuming the op doesn't need to file a Self Assessment return for any reason.

Bookle

Thanks both.
So if I understand correctly the full 'process' likely won't complete until end of current tax year when all the numbers are in.
Meantime I get a temp. tax code tweak.

Dazed_and_C0nfused

Bookle said:

Thanks both.
So if I understand correctly the full 'process' likely won't complete until end of current tax year when all the numbers are in.
Meantime I get a temp. tax code tweak.

No.  The wrong process has been applied so unless you get that corrected all that will happen at the end of the year is HMRC's end of tax year calculation will also be wrong as it will be based on you having made a relief at source contribution.