SIPP, Tax relief and HMRC payments
Discussion
Good morning,
Are there any tax experts here whilst I wait for the person I pay to do this to reply.
Im due a tax rebate of £7000 due to putting a lot of money in my SIPP this year, I get the first tax relief back from my SIPP provider and then claim the rest via my tax return. I also have tax to pay on my cash savings and shares outside my ISA from my dividends. All of this has been given as evidence to my taxman and we submitted the tax return for 23/24.
My paperwork shows I'm due £7000 back. They have my bank details and Im expecting HMRC to pay this soonish. Ive just checked my government gateway and my new tax code is, wait for it, 3481L which means I can earn £34K before before being taxed. Brilliant.
But this has to be a mistake right? Does this look like Ill get my tax rebate paid back over 12 months rather than a lump sum paid into my bank account!?
Cheers
Are there any tax experts here whilst I wait for the person I pay to do this to reply.
Im due a tax rebate of £7000 due to putting a lot of money in my SIPP this year, I get the first tax relief back from my SIPP provider and then claim the rest via my tax return. I also have tax to pay on my cash savings and shares outside my ISA from my dividends. All of this has been given as evidence to my taxman and we submitted the tax return for 23/24.
My paperwork shows I'm due £7000 back. They have my bank details and Im expecting HMRC to pay this soonish. Ive just checked my government gateway and my new tax code is, wait for it, 3481L which means I can earn £34K before before being taxed. Brilliant.
But this has to be a mistake right? Does this look like Ill get my tax rebate paid back over 12 months rather than a lump sum paid into my bank account!?
Cheers
Your accountant on the tax return has the option to tick take from PAYE or supply as a refund.
I always find despite them ticking the box, you then need to call HMRC to get them to put you back on a standard tax code. This happens every year for me and if you leave your return until later in the year, can create massive undertaking in tax which you then have to pay back the following month (as invariably they make the refund and ALSO change your code).
Bit of a pain but I’d get on the phone / in the queue and insist they leave your coding alone and just issue a refund….
I always find despite them ticking the box, you then need to call HMRC to get them to put you back on a standard tax code. This happens every year for me and if you leave your return until later in the year, can create massive undertaking in tax which you then have to pay back the following month (as invariably they make the refund and ALSO change your code).
Bit of a pain but I’d get on the phone / in the queue and insist they leave your coding alone and just issue a refund….
I have a similar tax code, also due to SIPP contributions.
No reason you can't get a direct refund AND also keep the increased tax code, if that's in line with expected SIPP contributions again this tax year.
Last tax year, for example, my tax code was something like 2900 based on the previous year's SIPP cont's, but I actually contributed more so I'm now due a refund of around £3k and my tax code has increased further.
Obviously if you don't expect to make the same contributions this year, then you should inform them as otherwise you'll get behind as pointed out by previous poster(s).
No reason you can't get a direct refund AND also keep the increased tax code, if that's in line with expected SIPP contributions again this tax year.
Last tax year, for example, my tax code was something like 2900 based on the previous year's SIPP cont's, but I actually contributed more so I'm now due a refund of around £3k and my tax code has increased further.
Obviously if you don't expect to make the same contributions this year, then you should inform them as otherwise you'll get behind as pointed out by previous poster(s).
Thanks everyone for your explanations. It’s has been resolved this morning and your answers explained my issue correctly.
My tax code has changed because HMRC believe I will make the same SIPP contributions this year. That may or may not be the case as I just top up my SIPP with whatever is left over from my monthly wages and any bonus I get. This will now be corrected to 1257L and my tax return has been resubmitted with an updated 1.1 field on TR4 to show a one off contribution.
I should get my 7k tax relief refund soon and I’ll do another form next year with my SIPP contributions for 24/25. Panic over. Imagine getting £34k before you get taxed!
My tax code has changed because HMRC believe I will make the same SIPP contributions this year. That may or may not be the case as I just top up my SIPP with whatever is left over from my monthly wages and any bonus I get. This will now be corrected to 1257L and my tax return has been resubmitted with an updated 1.1 field on TR4 to show a one off contribution.
I should get my 7k tax relief refund soon and I’ll do another form next year with my SIPP contributions for 24/25. Panic over. Imagine getting £34k before you get taxed!
oldaudi said:
Thanks everyone for your explanations. It’s has been resolved this morning and your answers explained my issue correctly.
My tax code has changed because HMRC believe I will make the same SIPP contributions this year. That may or may not be the case as I just top up my SIPP with whatever is left over from my monthly wages and any bonus I get. This will now be corrected to 1257L and my tax return has been resubmitted with an updated 1.1 field on TR4 to show a one off contribution.
I should get my 7k tax relief refund soon and I’ll do another form next year with my SIPP contributions for 24/25. Panic over. Imagine getting £34k before you get taxed!
Yep. It's hard to complain about getting, effectively, an extra £6,700 'free' for every £10k you dump into your pension.My tax code has changed because HMRC believe I will make the same SIPP contributions this year. That may or may not be the case as I just top up my SIPP with whatever is left over from my monthly wages and any bonus I get. This will now be corrected to 1257L and my tax return has been resubmitted with an updated 1.1 field on TR4 to show a one off contribution.
I should get my 7k tax relief refund soon and I’ll do another form next year with my SIPP contributions for 24/25. Panic over. Imagine getting £34k before you get taxed!
I’ve just populated my self assessment.
Assume I earned 60k through self employment but added 4k to my SIPP, my SIPP provider kindly added the 1k but will the other 1k come off my tax bill in self assessment calculations, or do I need to claim for that separately?
I’ve never added to a SIPP before so advice welcome.
Assume I earned 60k through self employment but added 4k to my SIPP, my SIPP provider kindly added the 1k but will the other 1k come off my tax bill in self assessment calculations, or do I need to claim for that separately?
I’ve never added to a SIPP before so advice welcome.
B9 said:
I’ve just populated my self assessment.
Assume I earned 60k through self employment but added 4k to my SIPP, my SIPP provider kindly added the 1k but will the other 1k come off my tax bill in self assessment calculations, or do I need to claim for that separately?
I’ve never added to a SIPP before so advice welcome.
Assuming it's the same SA form as for other employment types (I believe it is?) there's a section where you state what you've paid into your SIPP (as a gross figure, so £5k in your example) and then that gets taken into account when calculating your tax liability.Assume I earned 60k through self employment but added 4k to my SIPP, my SIPP provider kindly added the 1k but will the other 1k come off my tax bill in self assessment calculations, or do I need to claim for that separately?
I’ve never added to a SIPP before so advice welcome.
Edit: it's in the section titled 'Tax Reliefs' and it's listed as 'Paying into registered pension schemes and overseas pension schemes'
Edited by PorkInsider on Thursday 30th May 23:23
Any idea how long it takes HMRC to repay my SIPP relief? Ive requested it via the portal, waited the 48 hours for them to complete their additional security check , go back in to check the progress and the Credit is still there showing that I can request payment to my bank account which I already completed over 48 hours ago.....
Its stuck in an infinite loop.....Thanks
Its stuck in an infinite loop.....Thanks
Currently waiting refund "request" since January...check full amount still in their overpaid bit...the HMRC bot just says should have been contacted in February...speak to an advisor...no advisors available...don't hold your breath on a quick refund even if they told you how much they owe you!
Wonderman said:
Currently waiting refund "request" since January...check full amount still in their overpaid bit...the HMRC bot just says should have been contacted in February...speak to an advisor...no advisors available...don't hold your breath on a quick refund even if they told you how much they owe you!
yah - submitted my SA in January, refund due, spoke to HMRC and they said i should get it end of June! Gassing Station | Finance | Top of Page | What's New | My Stuff