HMRC higher rate relief online form - confused by 'total net contributions'

Mr_Crabbs

I'm completing the HMRC online form to claim higher rate relief against pension contributions.

I'm not clear what the form wants when it asks for 'total net contributions'. If, for example, I have added £12k contributions to a SIPP, had £3k automatic basic rate relief and am claiming £3k higher rate relief, is the 'total net contribution' £12k?

I ask because the form then grosses up to £15k and says the total estimated relief is £3k, but it seems to me it should be £6k - unless it's just referring to the total higher rate relief?

I've searched for previous posts on this but I don't find them clear either. Would be grateful for a clear statement of what I should be entering!

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6664040/hmrc-higher-rate-relief-online-form-confused-by-total-net-contributions

I can't see how total net contributions would be anything other than £12k in your example.

I don't know why HMRC would bother telling you anything about "total estimated relief" when you are submitting this information as until they have checked your overall tax situation the total relief due can't possibly be known.

It might be £6k in total. But you may have only paid intermediate rate tax. Or only paid higher rate tax on £1, not £15k and that severely limit the total relief due.

Sarahspangles

Your previous question is relevant. Particularly where posters explained you only get relief equivalent to the higher rate tax you actually paid.

https://forums.moneysavingexpert.com/discussion/6658858/quick-mad-question-on-additional-contributions

dunstonh

I'm not clear what the form wants when it asks for 'total net contributions'. If, for example, I have added £12k contributions to a SIPP, had £3k automatic basic rate relief and am claiming £3k higher rate relief, is the 'total net contribution' £12k?

The pension contribution is gross. The net contribution is before basic rate tax.

So, you made a contribution of £15,000 to the pension and you made a net contribution of £12,000.

I ask because the form then grosses up to £15k and says the total estimated relief is £3k, but it seems to me it should be £6k - unless it's just referring to the total higher rate relief?

You get £3,000 at source and £3,000 back via self-assessment. You don't get £6,000 back as you have already had £3,000.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81962149#Comment_81962149

The op wouldn't be completing that form though if they were in Self Assessment.

And there is no way of knowing if an additional £3,000 will be due or not.

Mr_Crabbs

@dunstonh said:

The pension contribution is gross. The net contribution is before basic rate tax.

So, you made a contribution of £15,000 to the pension and you made a net contribution of £12,000.

Thanks, that's what I wanted to confirm.

You get £3,000 at source and £3,000 back via self-assessment. You don't get £6,000 back as you have already had £3,000.

Yes, understood, it was more that the language again was confusing. I guess by 'total estimated relief' they really mean 'total for this claim'.

as @Dazed_and_C0nfused says it is the online intermediate & higher rate relief form, not self assessment.