Been an idiot and need help claiming HR Tax Allowance!
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I don't understand how he has lost out, was his employer taxing him on his gross (which was not reduced by his pension contributions), so also any additional income (interest, rent etc) would also not have benefited because his gross salary was not reduced.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0
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chucknorris wrote: »I don't understand how he has lost out, was his employer taxing him on his gross (which was not reduced by his pension contributions), so also any additional income (interest, rent etc) would also not have benefited because his gross salary was not reduced.
We have yet to establish if it was actually a RAS scheme, where conts are deducted after tax, or what HMRC confusingly refer to as a "net pay" scheme where conts are taken before tax thus giving full relief in the payslip.0 -
As others have said it depends on how your pension payments were deducted. If on PAYE you would already get the HR tax relief so there may not be any claim to answer. If it is relief at source then I guess you will need to complete a self assessment form and go back as many years as possible.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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enthusiasticsaver wrote: »As others have said it depends on how your pension payments were deducted. If on PAYE you would already get the HR tax relief so there may not be any claim to answer. If it is relief at source then I guess you will need to complete a self assessment form and go back as many years as possible.
I see now, I didn't realise that he had not been filling in tax returns. You should have seen the look on my friend's face when I said to him 'But surely you must submit a tax return every year. Otherwise how are you telling the Inland Revenue about the additional interest on all those millions'?
He worked full time, but had won about £6m gambling, but he had not been declaring the interest, which should have been taxed at 40%.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
That used to be the case, but the post-tax salary route is now much more common, given how few occupational schemes (final salary or money purchase) are left.
I'm not doubting you, but does anyone have any figures on this? My impression was that most large employers still used the net pay method so it would be interesting to see which method was most common both in terms of number of schemes and number of members.0 -
chucknorris wrote: »I see now, I didn't realise that he had not been filling in tax returns.0
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Many, many thanks & sorry for the delayed responses, as I'm working away and connectivity is a problem here.
I'm obviously going to need to get out previous Pay Slips etc when I get home, and find out what was being paid / contributed before the switch to Sal Sac two years ago.
I'll be back soon0 -
How does that "raise his hopes", it lowers them, he'll only get a tax refund if it was a RAS scheme.
If contributions had been deducted from gross pay, OP will already have received higher rate tax relief - so won't have 'missed a trick', as he puts it.
It it was a RAS scheme, as OP points out, he can't claim higher rate relief for all the years he has been making contributions.0
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