Pension higher-rate tax relief

dlevene

Last month I submitted a claim for pension relief, for the following contributions:

2023-4: a one-off additional contribution of £6500 to my Nest workplace pension. I also flagged that I didn't receive higher-rate relief on regular contributions of c.£1400

2024-5: a one-off contribution of £13,500 to my Vanguard personal pension, and c.£3000 of contributions to my Nest pension

2025-6: a one-off contribution of £15,000 to my Vanguard personal pension

Earlier this week I got email notifications saying that new tax calculations were ready. Logging in, it says that for 3-4 I'm owed c.£800, which will be carried forward to a later year; it also says that for 4-5 I'm owed c.£250, and I got a cheque today.

These figures are significantly less than what I was expecting. Am I wrong? What should I do?

zagfles

What does the calculation show?

GrumpyDil

No one can answer without far more detail around total earnings and how the contributions were made etc.

Have you tried doing your own calculation? Bear in mind for the 40% tax relief the way this works is to extend your 20% band by the amount of the contributions that would have been subject to 40%.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6669590/pension-higher-rate-tax-relief

Presumably the £250 is taking into account the £800 carried forward from 2023/24.

Is it possible you had already received some provisional relief via your tax code for either or both those years?

And I presume you are aware that the amount of higher rate relief is restricted by the amount of higher rate tax you were otherwise due to pay?

dlevene

https://forums.moneysavingexpert.com/discussion/comment/82009880#Comment_82009880

But then where did the £550 of overpaid tax go? Even that is thousands of pounds less than I thought it should be given that pension relief.

I don't see anything in the online portal that suggests provisional relief? The only thing I can see in the tax-free allowance and income tax estimate are some references to "Untaxed interest on savings and investments".

I am aware yes - I don't think that should have impacted this but not totally sure.

https://forums.moneysavingexpert.com/discussion/comment/82009873#Comment_82009873

Sure - am doing my best to give the relevant info without going too far! I've earned at least £80k in each of the relevant years. I changed jobs in March 2025. Prior to that pension contributions were through Nest, relief-at-source. Since then workplace contributions have been to the LGPS (net pay) but I also opened a private pension with Vanguard (relief-at-source).

I've done my own calculations yes - by my reckoning I was due to close to £10k…

https://forums.moneysavingexpert.com/discussion/comment/82009850#Comment_82009850

The 23/24 calculation lists total income for old job and about £400 untaxed interest, with the income tax paid for the former. It then deducts the standard personal allowance, to give total taxable income. Then it breaks down income tax rates: PSA at 0% on the c.£400, then basic rate, then higher rate, concluding that I should have paid almost £800 less tax than I did. Finally, under "Result" it mentions a "Repayment Supplement" of about £30 before concluding I'm owed about £800.

The 24/25 calculation lists total income for the old job, what is essentially a couple of months salary for the new job, and almost £900 for untaxed income, with income tax for the first two items. It then deducts the standard personal allowance, to give total taxable income. Then it breaks down income tax rates: PSA at 0% on £500, then basic rate, then higher rate, with a total income tax about £600 more than it says I paid in the first section. The next section then states an adjustment of the £800 (from 23-24?). Concludes HMRC owes me the c.£250 they sent me a cheque for…

So I think what's happening, interrogating the above, is that all that's happened is that they've realised they charged me £800 too much tax on savings income in 23/24, £600 not enough income tax in 24/25 (due to the new job?), and sent me a cheque for the difference??

Right? They still haven't processed my pension relief for 23/24, 24/25, 25/26?

Should I call HMRC on Tuesday or should I leave them to it? (The claims were submitted 25th April). Should I go ahead and cash the cheque they've sent me?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/82009932#Comment_82009932

I think you need to read the calculations more carefully.

Has your basic rate been increased by the gross amount of your relief at source pension contribution?

Does the calculation for 2024/25 show an adjustment of ~£800 has been taken into account? This will be the overpayment brought forward from 2023/24.

Repayment Supplement is (tax exempt) interest paid by HMRC in connection with overpaid tax.

dlevene

https://forums.moneysavingexpert.com/discussion/comment/82009982#Comment_82009982

Okay, for 23-4 the basic rate has been increased by slightly more than (but not the same as…) the gross amount of the regular contributions… but not the one-off contribution. Don't know where the discrepancy comes from, or why the one-off hasn't been factored in.

For 24-5, yes the exact amount I was due from 23-4 has been included as an adjustment. But the tax rates have not been amended to reflect the additional pension contributions I've claimed for.

So I think there might be an error for 23-4, and they haven't got around to processing the claim for 24-5 or 25-6 yet? Does that sound right?

DRS1

Don't HMRC now ask for evidence of pension contributions (even if they are below £10k)? If so is it possible someone is still looking at the evidence you submitted?

Only way to find out would be to call HMRC.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/82010035#Comment_82010035

The more likely thing is they haven't looked at your recent submission at all. The relief given could be from a previous claim.

NormalNorman

You mentioned last month you submitted a claim…

Last year I submitted two claims ending up in my tax code being increased.

The process for the online forms took roughly three months. What does the HMRC form tracker say.

Cheers

dlevene

https://forums.moneysavingexpert.com/discussion/comment/82010838#Comment_82010838

Twenty-eight days…