Can I reclaim tax relief on pension contr. as basic rate tax

[CoolHands]

I purchased additional pension in approx feb 17, (I actually applied in dec 16] and I paid for it as a lump sum using my own money. I didn’t claim any tax relief & have never done a self-assessment form. I just thought I’d look into it, & phoned hmrc and they said that as I wasn’t a higher rate tax band, I can’t claim tax relief. I was marginally below the higher-rate threshold apparently by a few hundred pounds.

My basic question is, is that right? Why don’t I get tax relief at 20%?

[CoolHands]

Hi bogie sorry can you elaborate on what that means? I paid, and never got a refund. But also no extra pension tax relief amount was added to the pension I purchased. So as far as I can see it has not been used to my benefit in either direction?

Edit

I’ve just check and I made the purchase in jan 17. So that is the tax year 16/17 yes? My pay that year as just checked on my gov gateway account was £34k. The higher rate threshold for 16/17 was £32,001 upwards. So therefore I was at that time in the higher rate bracket? So do I need to do a self assessment (is it too late?)

The girl on the phone wasn’t very good and didn’t inspire confidence; she referred to my 17/18 pay which was under the 17/18 higher rate threshold. But I purchased before the 17/18 tax year so I don’t get that.

Edited by CoolHands on Saturday 12th October 09:50

Edited by CoolHands on Saturday 12th October 09:52

[CoolHands]

Sorry Eric can you look at additional info I just edited in above? Not sure about tax years and when this occurred. I was higher one year but basic the next.

[CoolHands]

Eric Mc said:

In what tax year were you a higher rate tax payer?
Did you make additional pension contributions in that tax year?

Well according to my gov site info higher rate in 16/17 as from the numbers I earnt above the higher rate threshold for 16/17? And I purchased the addition pension in jan 2017 as a lump sum.

Edited by CoolHands on Saturday 12th October 10:11

[CoolHands]

Ok I just rang them again and what they said is you would add on the tax free allowance to the threshold and only if you earn above that would be a higher rate tax payer and therefore be able to claim tax relief.

So my calculations based on the way it has been explained to me are in 2016/17:

Higher band threshold =£32001
Personal allowance £11,000
32001+11000=43001

If I was earning above £43001 then I would have been a higher rate tax payer(?) but as I wasn’t, I was a basic rate tax payer and therefore cannot claim tax relief.

Doe that read correctly?!

Frankly, I don’t get it

Edited by CoolHands on Saturday 12th October 11:08

[CoolHands]

Ok thick question time. Was I or was I not a higher rate tax payer that year? As I was earning £34k which is above the threshold of that year of £32k?

By these if anyone can help it also says in part of the pension scheme documentation

“Can I claim Tax Relief on the additional contributions I pay?
You’ll normally receive tax relief through the PAYE system if you pay by instalments. You’ll need to speak to the tax office about tax relief if you make a lump sum payment.”

So I still don’t think I’ve got tax relief of even the 20% amount? I paid £10,000 and that purchased some additional pension, but I think I’m somehow missing out on pension relief be it even at 20% level??

Edited by CoolHands on Saturday 12th October 11:39

[CoolHands]

Ok thanks both I understand now about higher rate.

Without being a real drag, has the relief at 20% been used anywhere? Sorry for thicko questions.

[CoolHands]

I don’t think the 20% was added cos my £1000 I purchased (for a cost of £9440) was all that got added to my pension statement. But now I’m going to screw things up by saying the was with teachers pensions, so maybe it’s different somehow? Although I don’t think / can’t see why it would be. The only thing I know is what I quoted above and see pic below, which appears to say nothing happens and I will have to contact my local tax office (as I paid by lump sum not instalments)

I sent them a message so will have to wait for response which will probably take 2 weeks, I will update when I hear back.

[CoolHands]

It said tax code at the end of the year was 1100L

“Your tax code for LONDON BOROUGH OF XXXXX from 6 April 2016 to 5 April 2017 was 1100L”

[CoolHands]

It seems I was not wrong to consider this, as I have found a post on the exact same topic on the teachers forum, one person said the following in response to a similar query::

Forum said:

”I did a one off payment for additional pension. You pay the whole amount to teacher's pensions, then they send you a letter confirming the payment. You send a copy of that confirmation with an accompanying letter to HMRC explaining you made a gross payment to your pension and would like to claim the tax relief. They will adjust your tax code (add your gross payment to your tax code, e.g, if your tax code is 11850L and you make a £20,000 gross payment contribution, your tax code will become 11850+20,000=31850L. so you claim back the tax through your monthly pay. You won't pay in income tax until all the tax has been claimed back.”

So I intend to do likewise and see if I get anywhere. As I looked at my tax codes the following years and they remained normal ie didn’t change / take account of the above.

[CoolHands]

Hi it’s been 1 week short of 2 months since I posted a letter to hmrc pensions about this and I’ve not had any response. Any thoughts on how long I should wait / they will take to respond? I laid it out clearly and gave all info in my letter so I thought would be fairly straightforward either way.

[CoolHands]

Yeah I knew about brexit so I thought I was being patient at 2 months! I shall hang on in there

[CoolHands]

Well after an initial letter from hmrc saying only higher rate tax payers get relief,l so I wasn’t entitled, I wrote a second letter asking for someone to review my case in more detail (I gave all specifics).

I’m happy (for myself!) to report I was correct and owed 20% relief and got a nice cheque

It took 2 phone calls (got told wrongly I wasn’t entitled) and 3 letters (1 they claimed ‘never received’, 1 they denied I was entitled, and on 3rd they acted)

Edited by CoolHands on Friday 17th July 08:36