Claiming higher rate pension tax relief?
Discussion
Can anyone advise me on the correct procedure?
Along with putting my bonus straight into my pension I try and select a %age of salary sacrifice to keep my taxable pay below £50k. Due to not only wanting to not pay 40% tax I also have 2 kids so the government will also want an extra 19% plus NI. (Don't get me started on the frozen tax bands or the fact they don't look at a joint household income, grrr).
When I got my pay slip at the start of March I saw that I'd still be a few £k over so I did a lump sum payment into my pension and the pension provider topped it up by the standard 20%.
I then phoned HMRC to clarify what I needed to do as I guessed I'd have to do a self assessment (for the child benefit) and then they'd work out the extra tax back I'd be owed.
The lady on the phone said I wouldn't need to do a self assessment and to just write them a letter with the details and they would refund the 20%. (They couldn't take the details on the phone as I could tell them anything, but I could write whatever I want in a letter and that's fine
).
So I sent a letter at the end of March and have heard nothing since? Have I done the right thing? Will I still need to do a self assessment anyway? Should I sit on hold to the HMRC for an hour again?
Many thanks.
Along with putting my bonus straight into my pension I try and select a %age of salary sacrifice to keep my taxable pay below £50k. Due to not only wanting to not pay 40% tax I also have 2 kids so the government will also want an extra 19% plus NI. (Don't get me started on the frozen tax bands or the fact they don't look at a joint household income, grrr).
When I got my pay slip at the start of March I saw that I'd still be a few £k over so I did a lump sum payment into my pension and the pension provider topped it up by the standard 20%.
I then phoned HMRC to clarify what I needed to do as I guessed I'd have to do a self assessment (for the child benefit) and then they'd work out the extra tax back I'd be owed.
The lady on the phone said I wouldn't need to do a self assessment and to just write them a letter with the details and they would refund the 20%. (They couldn't take the details on the phone as I could tell them anything, but I could write whatever I want in a letter and that's fine
).So I sent a letter at the end of March and have heard nothing since? Have I done the right thing? Will I still need to do a self assessment anyway? Should I sit on hold to the HMRC for an hour again?
Many thanks.
A bit after the rvent in your case, but in the years when I paid in the whole of my bonus into my pension I engaged payroll (via the finance director) and got them to pay the bonus via the salary sacrifice method. That way no tax to reclaim and no need for self assesment or writing letters.
Its in the companies beneft too to do ut this was as they dont pay employers NI on pension contibs, so no reason for thhem to say no really. Our FD was supportive once I suggested it.
I suspect your easiest way out of the situation you’re in now would be just to do a self assesement, then you’ll get the tax back once submitted.
Its in the companies beneft too to do ut this was as they dont pay employers NI on pension contibs, so no reason for thhem to say no really. Our FD was supportive once I suggested it.
I suspect your easiest way out of the situation you’re in now would be just to do a self assesement, then you’ll get the tax back once submitted.
AdamV12V said:
A bit after the rvent in your case, but in the years when I paid in the whole of my bonus into my pension I engaged payroll (via the finance director) and got them to pay the bonus via the salary sacrifice method. That way no tax to reclaim and no need for self assesment or writing letters.
Its in the companies beneft too to do ut this was as they dont pay employers NI on pension contibs, so no reason for thhem to say no really. Our FD was supportive once I suggested it.
I suspect your easiest way out of the situation you’re in now would be just to do a self assesement, then you’ll get the tax back once submitted.
Yeah the bonus went in via salary sacrifice. I've been doing to odd bit of overtime which is what made me "accidentally" go over by the end of the year. I thought I had compensated enough.Its in the companies beneft too to do ut this was as they dont pay employers NI on pension contibs, so no reason for thhem to say no really. Our FD was supportive once I suggested it.
I suspect your easiest way out of the situation you’re in now would be just to do a self assesement, then you’ll get the tax back once submitted.
I was fully prepared to do a self assessment it was just because she said I didn't have too that I haven't yet.
What you were told on the phone was my experience also. L used to do self assessment due to rental property but since got rid of those still have the odd manual pension contribution for the same reason as you. No need to do self assessment just a letter explaining the amount you paid and they'll sort it out. Can take months at the moment but then SA tax refunds weren't exactly quick either...
Hondashark said:
Sent the letter in March, heard nothing, phoned at the end of July said she couldn't find it and would get the "specialist" team to call me.
Have heard nothing.
Absolutely useless, guessing I will need to do a self assessment which needs to be applied for by the 5th October?
I sent a letter in February for the very same reason; they owe me about £5k. No response whatsoever and endless waiting on the phone. I’ve given up. Have heard nothing.
Absolutely useless, guessing I will need to do a self assessment which needs to be applied for by the 5th October?
Hondashark said:
Sent the letter in March, heard nothing, phoned at the end of July said she couldn't find it and would get the "specialist" team to call me.
Have heard nothing.
Absolutely useless, guessing I will need to do a self assessment which needs to be applied for by the 5th October?
The filing deadline for Self Assessment - if filing electronically - is actually 31 January. So, if you intend to submit a tax return for 2022/23, you have until 31 January 2024 to get it in. If you don't have a Self Assessment Tax Reference (SATR) you will need to get one as soon as possible.Have heard nothing.
Absolutely useless, guessing I will need to do a self assessment which needs to be applied for by the 5th October?
Crumpet said:
Hondashark said:
Sent the letter in March, heard nothing, phoned at the end of July said she couldn't find it and would get the "specialist" team to call me.
Have heard nothing.
Absolutely useless, guessing I will need to do a self assessment which needs to be applied for by the 5th October?
I sent a letter in February for the very same reason; they owe me about £5k. No response whatsoever and endless waiting on the phone. I’ve given up. Have heard nothing.
Absolutely useless, guessing I will need to do a self assessment which needs to be applied for by the 5th October?
ked it up.I was in a similar situation to you this year.
- Called HMRC. They said no need for self assessment and to write details in letter.
- Sent the letter.
- a couple months later received letter from HMRC saying I need to do a self assessment.
- complete self assessment and submit.
- few weeks later receive letter from HMRC telling me I don't need to do a self assessment.
Good times.
- Called HMRC. They said no need for self assessment and to write details in letter.
- Sent the letter.
- a couple months later received letter from HMRC saying I need to do a self assessment.
- complete self assessment and submit.
- few weeks later receive letter from HMRC telling me I don't need to do a self assessment.
Good times.
I put some money into my sipp and had the same advice as you, got nowhere, eventually I lodged a complaint, and it was the complaints officer who sorted it. She phoned me about the issue, took a minute to register then went directly to the appropriate office and had the refund processed, cheque a few days later.
The Self Assessment summary said I was due a tax refund within £4 of what I was expecting so hopefully that's right. No mention about Child Benefit at the end so hopefully that'll flag that my taxable pay is back below £50k.
Only issue I had was it asking about benefits like health insurance and to entre the figure. Looks to cost £500 odd a year (is asterixed on my payslips as shown but not paid).
But my P60 taxable pay already includes this figure so if you enter it separately on the self assessment then it counts it twice (I don't have a P11d to see what it says in section I box 11). So I left it off.
Only issue I had was it asking about benefits like health insurance and to entre the figure. Looks to cost £500 odd a year (is asterixed on my payslips as shown but not paid).
But my P60 taxable pay already includes this figure so if you enter it separately on the self assessment then it counts it twice (I don't have a P11d to see what it says in section I box 11). So I left it off.
I have found a live chat service on HMRC website, which seems to get results. They owed me a 4 figure amount and no amount of request a refund worked.
Live Chat said that it never would because I voluntarily submitted a self assessment, but they had sorted it, and the money duly arrived.
Live Chat said that it never would because I voluntarily submitted a self assessment, but they had sorted it, and the money duly arrived.
I wrote to HMRC in January to request higher rate tax relief on a contribution into my SIPP in the 21/22 year. Similar experience to you but I've made some progress in the last few weeks by opening a complaint. Within a couple of weeks they had sent me through a tax calculation although it had two errors. I've responded and they've acknowledged my response but still waiting for a corrected calculation from them. I think it's worth you opening a complaint to get things moving.
I went on the live chat and he said they had recieved my letter in April but by the time they entered it onto the system I had already done the self assessment (19th September I did the self assessment).
He has processed the refund for me though and it finally got to my bank a few weeks later (a few days ago).
I've ignored the child benefit letter as that's what I'm supposed to do if I don't owe anything. I dont know how long it takes to get the self assessment onto the system for the child benefit people to then be updated though.
He has processed the refund for me though and it finally got to my bank a few weeks later (a few days ago).
I've ignored the child benefit letter as that's what I'm supposed to do if I don't owe anything. I dont know how long it takes to get the self assessment onto the system for the child benefit people to then be updated though.
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