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Posted Fri, 12 Apr 2024 21:05:30 GMT by Rustem
Hi there, I was wondering if someone could advise me on the correct course of action. Tax year 2023/2024. I am a higher tax payer, but I don’t submit Self Assessment tax return. I live in Scotland and I was in receipt of the Child Benefit for the entire tax year. As my total taxable income through PAYE was in excess of £60,000 I was considering to register for Self Assessment to settle the Child Benefit Charge for the tax year 2023/2024. Then at the end of March 2024 I made a one-off contribution of £16,000 (including 20% tax relief at source) into my employment pension plan directly from my bank account (from my after-tax savings). I am currently in a process of preparing my letter to HMRC claiming additional tax relief on my pension contribution. The HMRC gov.uk web page on “Tax on your private pension contributions” specifically states: You must write to HMRC to make a new claim for a pension contribution over £10,000. It is also important to note that this one-off £16,000 pension contribution brings my adjusted net income below £50,000, and therefore voids any Child Benefit Charge due. Please advise on the correct course of action: a) Only send the letter to HMRC (including all the required documents from the pension provider) claiming additional tax relief. Then HMRC will automatically update my adjusted net income and there won’t be any requirement to submit the Self Assessment tax return. b) Send the letter to HMRC and then also submit my Self Assessment tax return for the tax year 2023/2024. c) Do something else. Please advise. Many thanks.
Posted Tue, 23 Apr 2024 08:26:52 GMT by HMRC Admin 8
Hi,
As you earn over £50,000 before adjusted net income is calculated, and receive Child Benefit, you will need to complete a Self Assessment return.
Include the stated amount of one-off pension contributions in that return, and send the letter including evidence of the contribution.
Thank you.
Posted Thu, 16 May 2024 17:55:29 GMT by Rustem
Hi there, Thank you for your response. In addition to my post above. Please be advised that I sent my letter to HMRC claiming additional tax relief on my pension contributions on April 18, 2024. This morning I received an electronic message in my HMRC app advising me of my new tax calculation for the tax year 2023/2024. It also contained the full tax calculation (P800) taking into account my private pension contributions. Do I still need to complete a Self Assessment return as I earned over £50,000 before adjusted net income was calculated, and I receive Child Benefit? Or because the adjusted net income has now been calculated through P800, I am no longer required to complete a Self Assessment return. Please advise. Many thanks.
Posted Tue, 21 May 2024 13:43:41 GMT by HMRC Admin 19
Hi,

You would still need to complete a tax return, as your initial income before adjustments is over £50,000.

Thank you.

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