Tax Underpayment.
Discussion
Just had a letter from HMRC, telling me I owe them £1400 for the 17/18 year, due to my private medical premium being higher that they'd allowed for on my P11D. I've checked the figures and they are right. 
As a 40% taxpayer, if I make a one off payment into my pension scheme of £3500 out of my savings (on which the tax relief is £1400), can I just tell them what I've done and get out of paying the £1400?
As a 40% taxpayer, if I make a one off payment into my pension scheme of £3500 out of my savings (on which the tax relief is £1400), can I just tell them what I've done and get out of paying the £1400?
To prevent this type of thing from happening, people should learn how tax codings work and review the coding as soon as it is issued by HMRC to see if the coding has been calculated and allocated correctly. It's much better to sort out coding anomalies within the tax year rather than in arrears after the end of the tax year.
Eric Mc said:
To prevent this type of thing from happening, people should learn how tax codings work and review the coding as soon as it is issued by HMRC to see if the coding has been calculated and allocated correctly. It's much better to sort out coding anomalies within the tax year rather than in arrears after the end of the tax year.
I agree and I do. I don't know how it slipped by. I think they got my car wrong and I got into a debate with them on that at the time that I must have forgotten to check the private medical benefit. But it's my fault, and I am where I am. So does my cunning plan work?
TwigtheWonderkid said:
I agree and I do. I don't know how it slipped by. I think they got my car wrong and I got into a debate with them on that at the time that I must have forgotten to check the private medical benefit.
But it's my fault, and I am where I am. So does my cunning plan work?
No.But it's my fault, and I am where I am. So does my cunning plan work?
Basic rate tax relief would be claimed by your pension provider.
Squiddly Diddly said:
TwigtheWonderkid said:
I agree and I do. I don't know how it slipped by. I think they got my car wrong and I got into a debate with them on that at the time that I must have forgotten to check the private medical benefit.
But it's my fault, and I am where I am. So does my cunning plan work?
No.But it's my fault, and I am where I am. So does my cunning plan work?
Basic rate tax relief would be claimed by your pension provider.
The actual reason it doesn't work is that you cannot backdate pension contributions to an earlier year.
With your cunning plan, you will reduce your 2018/19 tax liability by £1,400, but HMRC are chasing an underpayment for the 2017/18 tax year...
You can bring forward unused pension contribution allowances from an earlier year, but that's a separate matter and doesn't help you here.
With your cunning plan, you will reduce your 2018/19 tax liability by £1,400, but HMRC are chasing an underpayment for the 2017/18 tax year...
You can bring forward unused pension contribution allowances from an earlier year, but that's a separate matter and doesn't help you here.
Edited by schmunk on Tuesday 26th March 13:14
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