Claiming back tax

Bimbly

Redundancy pay is going to take me into the 40% tax bracket for the first time. I plan to put the whole taxable portion into my pension. The pension company will claim the 20% tax relief and I will need to claim back the rest.

How easy is this to do before the end of the financial year? I'd rather not wait to file a tax return in April as I want to shuffle my money ahead of that (partly to max out a cash ISA).

My taxable pay plus taxable redundancy will be about £69,000. I am planning to put the whole lot into my pension utilising carry forward.

I have asked my employer to pay the taxable portion of my redundancy pay direct into my pension, but they say they won't do that.

I do not expect to earn any more money in this financial year.

NoMore

https://www.gov.uk/guidance/claim-tax-relief-on-your-private-pension-payments

Use the above.

Bimbly

• Thanks, NoMore. Can I still use this form even if I usually file a tax return? (I have a loss-making side hustle). There was this confusing statement on the link:
  
  If you complete a Self Assessment tax return, you must claim through your tax return (for the current tax year and any previous years). Use this service if you are claiming tax relief through your tax code for just the current tax year.

I will be "claiming tax relief through your tax code for just the current tax year."

Grumpy_chap

Duplicate Thread

https://forums.moneysavingexpert.com/discussion/6684601/tax-on-redundancy-pay-again

Bimbly

https://forums.moneysavingexpert.com/discussion/comment/82149284#Comment_82149284

No. Two different questions.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82149184#Comment_82149184

It's certainly confusing. You need to claim via your tax return if you are claiming for the current year AND any previous years. If you are only claiming for the current year and want tax relief through a tax code adjustment, then you'd use the form.

RogerPensionGuy

69K total.

Are you not taking 12.5K personal allowance in this year?

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82149184#Comment_82149184

I am not sure you are "claiming tax relief through your tax code" though. Don't you say elsewhere that you don't expect to earn any more this tax year. Changing your tax code for this year will not give you any relief if you don't earn anything.

Having said that I did not think the online form was just for changing your tax code - I thought people had received tax repayments by using it.

But anyway if you do self assessment you should use that to claim the relief. That much is pretty clearly stated.