Tax relief on pension contributions - tax code question

[Gio G]

Hope someone would be kind enough to provide some guidance please...

Having just submitted a SA tax return in the last few weeks - (first time) I am a little confused why the new tax code notice sent through, has not taken into account the relief on the pension contributions (higher rate payer) which I gave details of in the return. They have included elements in the code like business expenses and gift aid.

Would this be just an oversight?

G

[PurpleMoonlight]

Higher rate tax relief on personal contributions for the tax year of the Return is usually made via a specific payment to the tax payer and not incorporated into their current year tax code.

[Eric Mc]

Sometimes it is. I've seen both treatments.

I'd prefer if HMRC left PAYE Codes alone.

When Making Tax Digital comes in this will be the norm.

[oldaudi]

I've submitted my SA form online a few weeks ago. My SIPP relief contributions are paid 20% automatically by Hargreaves Lana down and the other 20% has been made this year by changing my tax code, it's now higher than 1100 L
Weirdly though the new tax code is active from this month and HMRC have already told pay roll of the change and it's been effective from Octobers wages. Before this year I've had a cheque. No idea why it's change perhaps this year I didn't make many contributions.....

[Eric Mc]

Messing with tax codes based on previous year's data (which HMRC has to do a lot of the time) often causes

a) confusion

b) errors - because what was relevant in the last tax year may not be relevant this year

[JeremyH5]

I overcame the issue raised by the OP by telephoning HMRC and speaking to a nice lady who amended my code for the new tax year and both my employer and I received the new coding notice within days.

[Eric Mc]

Yes - HMRC will amend the tax code if you ask - even if you are wrong

[JeremyH5]

Indeed. I now need to make the correct value of pension contributions! On target so far.

Or telephone the nice lady to change my code again.