Self assessment / SIPP contribution question
Discussion
Hello,
Thought it would be easy to google this, but could not find an answer.
I've been a bit later than usual paying into my SIPP this year, and my pension provider will not reclaim the basic tax relief until next tax year.
If I put in, say, £800, but my provider does not add the £200 basic relief until May, when it comes to my self assessment, should I:
1) Put £800 as my 2016/17 contribution and include May's £200 in to 2017/18
or
2) Put £1000 down in 2016/17?
Many thanks!
Thought it would be easy to google this, but could not find an answer.
I've been a bit later than usual paying into my SIPP this year, and my pension provider will not reclaim the basic tax relief until next tax year.
If I put in, say, £800, but my provider does not add the £200 basic relief until May, when it comes to my self assessment, should I:
1) Put £800 as my 2016/17 contribution and include May's £200 in to 2017/18
or
2) Put £1000 down in 2016/17?
Many thanks!
I had similar last year, although I'm taxed as paye so don't file a tax return. I paid a sum on on April 4th not getting the tax relief until late May. I phoned hmrc in April and they offered to change my tax code to refund the higher rate portion of tax (to get the 40% tax relief, however I pay different sums in each year and didn't want my tax code changed),so they suggested I send a letter stating this, two weeks later I had a cheque for the 20% higher rate tax relief, the other 20% was added by the pension provider in May.
I would at option 2 is more likely as you're claiming tax from when you pay in, not when you get the relief, however I would say to phone hmrc, I actually found them very helpful.
I would at option 2 is more likely as you're claiming tax from when you pay in, not when you get the relief, however I would say to phone hmrc, I actually found them very helpful.
PurpleMoonlight said:
Thanks. Option 2 it is.bigmadjohn said:
I had similar last year, although I'm taxed as paye so don't file a tax return. I paid a sum on on April 4th not getting the tax relief until late May. I phoned hmrc in April and they offered to change my tax code to refund the higher rate portion of tax (to get the 40% tax relief, however I pay different sums in each year and didn't want my tax code changed),so they suggested I send a letter stating this, two weeks later I had a cheque for the 20% higher rate tax relief, the other 20% was added by the pension provider in May.
I would at option 2 is more likely as you're claiming tax from when you pay in, not when you get the relief, however I would say to phone hmrc, I actually found them very helpful.
I am also PAYE but do fill in SA due to child benefit (which would all be paid back was it not for the various reliefs available). Last year I had some cash lying around and used it to get some tax back at the end of the year. HMRC then changed my tax code for this year which assumes I'll make the same contribution again. Will be tough this time but trying to catch up now to avoid having to pay extra tax after my SA.I would at option 2 is more likely as you're claiming tax from when you pay in, not when you get the relief, however I would say to phone hmrc, I actually found them very helpful.
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