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    • checco
    • By checco 13th Jan 19, 7:27 PM
    • 1Posts
    • 0Thanks
    checco
    Tax Relief Rebate
    • #1
    • 13th Jan 19, 7:27 PM
    Tax Relief Rebate 13th Jan 19 at 7:27 PM
    HI,
    I just discovered that I am eligible to and extra 20% tax relief for my pension contribution.
    I have been on the 40% Tax bracket since 2011/12.
    From what I can see, I can only claim the last 4 years of my pension contribution.
    Is there a way to calculate the amount the HMRC owe me?
    I have been reading and looking at quite few threads and I cannot see a formula or anything.
    I am struggling to understand the pension part as some of the people say I contributed 40K on a 60K salary.
    Can someone help me on understanding the pension side and tax relief?

    Thank you

    Regards

    Checco
Page 1
    • dunstonh
    • By dunstonh 13th Jan 19, 7:40 PM
    • 96,442 Posts
    • 64,333 Thanks
    dunstonh
    • #2
    • 13th Jan 19, 7:40 PM
    • #2
    • 13th Jan 19, 7:40 PM
    From what I can see, I can only claim the last 4 years of my pension contribution.
    Why just 4? HMRC generally work to 6 years.

    Is there a way to calculate the amount the HMRC owe me?
    yes

    Can someone help me on understanding the pension side and tax relief?
    What type of pension do you have?
    Is it paid via direct debit or via your payslip?
    Is via payslip, is it paid before you are taxed or after?

    I will just ask those three for now but there are more variables but these 3 should reduce the number of questions.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Dazed and confused
    • By Dazed and confused 13th Jan 19, 7:42 PM
    • 3,536 Posts
    • 1,782 Thanks
    Dazed and confused
    • #3
    • 13th Jan 19, 7:42 PM
    • #3
    • 13th Jan 19, 7:42 PM
    Is there a way to calculate the amount the HMRC owe me?
    Yes, the gross pension contribution (your payment plus basic rate relief added by the pension company) increases the amount of basic rate tax you can pay in the relevant year(s).

    Note you do not get an additional 20%, your tax is recalculated as explained above. Which may produce an additional 20% but that is extremely unlikely. And this assumes you are talking about a relief at source scheme.

    Have you filed Self Assessment returns for any of the years impacted?


    I am struggling to understand the pension part as some of the people say I contributed 40K on a 60K salary.
    Who are these people?
    • Dazed and confused
    • By Dazed and confused 13th Jan 19, 7:43 PM
    • 3,536 Posts
    • 1,782 Thanks
    Dazed and confused
    • #4
    • 13th Jan 19, 7:43 PM
    • #4
    • 13th Jan 19, 7:43 PM
    HMRC normally only allow any claims for 5 years (the current tax year and previous 4 years).
    • kangoora
    • By kangoora 13th Jan 19, 8:41 PM
    • 617 Posts
    • 439 Thanks
    kangoora
    • #5
    • 13th Jan 19, 8:41 PM
    • #5
    • 13th Jan 19, 8:41 PM
    HMRC normally only allow any claims for 5 years (the current tax year and previous 4 years).
    Originally posted by Dazed and confused
    The OP had best get cracking then on this. Needs to be done before the 5th April before it rolls into a new tax year with nothing to claim on it.
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