Getting nowhere claiming pension tax relief, any advice?
Discussion
I'm a bog standard paye employee. I put 20k into a SIPP , separate from my workplace pension, in September last year. I received tax relief into the SIPP but I am a higher rate taxpayer so I want to claim the rest. I've written to HMRC in February with the statement, all the details etc and it's acknowledged and visible on Gov.uk . I've spoken toi them on the phone since, all in order, just a matter of waiting. But how long? I coiuld do with the money, and it's put me off adding to my pension, if you can't get the tax relief you're entitled to, what's the point?
(I'm nowhere near any annual limit or salary limit btw)
(I'm nowhere near any annual limit or salary limit btw)
I think it took them about 10 months when I made a similar one-off contribution in 2021 after I’d left a job.
Previously, when I was employed, my company payroll had processed the additional contribution so that I received the relief at source.
The other way to avoid the wait is to make smaller contributions. When I spoke to HMRC to find out when I might receive the rebate, they told me that they can authorise smaller rebates over the phone. Unfortunately, I can’t remember what the upper limit was, but I think it was for gross contributions of less than £10k (ie, a £2k rebate for a 40% tax payer).
Previously, when I was employed, my company payroll had processed the additional contribution so that I received the relief at source.
The other way to avoid the wait is to make smaller contributions. When I spoke to HMRC to find out when I might receive the rebate, they told me that they can authorise smaller rebates over the phone. Unfortunately, I can’t remember what the upper limit was, but I think it was for gross contributions of less than £10k (ie, a £2k rebate for a 40% tax payer).
I added to my SIPP for the 21-22 tax year, typically I sal sac via work pension scheme but added to the SIPP as was trying to reduc my taxable net income down (child benefit-related). The tax stuff still confuses me it it appears my SIPP provider reclaimed the 'basic tax' relief amount on my behalf and credited the amount to my SIPP( 6-8 weeks) and HMRC adjusted my 22-23 tax code for the remainder (to cover the 'higher rate' tax relief). Hopefully I've got that right though with my lack of basic arithmetic it could be incorrect!
Also just FYI I completed SA for 21-22 to ensure HMRC were aware of my SIPP contribution though they have told me I shouldn't need to do SA for this tax year which should save me a bit of time faffing about hopefully.
Also just FYI I completed SA for 21-22 to ensure HMRC were aware of my SIPP contribution though they have told me I shouldn't need to do SA for this tax year which should save me a bit of time faffing about hopefully.
Gassing Station | Finance | Top of Page | What's New | My Stuff