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Posted Sun, 10 Jul 2022 17:48:58 GMT by ritchieA
Dear HMRC, I am employed and do a self assessment return for rental income, this year the combined income will exceed the basic rate for the first time, I am currently paying pension into NEST with employer and employee contributions of combined 8% from my salary. Do I need to fill in pension information on my tax return, if so, do I need to include the employer contributions as well or not? And where can I get the exact figure for how much I have contributed? Thank you .
Posted Tue, 12 Jul 2022 07:43:59 GMT by HMRC Admin 17

Hi,
 
Please ask NEST to provide you with a statement confirming your annual pension contributions (specifying how much you paid each month,
and how much your employer contributed).

You can then claim the appropriate amount of higher rate personal pension relief by completing the relevant section of your
Self Assessment tax return (SA100). 

The total relief you claim should not include the amount contributed by your employer.

Thank you.
Posted Thu, 14 Jul 2022 17:24:02 GMT by ritchieA
Dear HMRC, I have managed to get a document from NEST, which shows my contributions each month etc. I started a new employment in January 2021, payslip shows deduction of pension each month, from jan, feb and March 2021 and I was notified by nest that my enrolment was successful in late February 2021, but the contribution arrived in NEST on the 20th of April 2021 as a lump sum, for the 3 monthes of jan feb and March. My employer’s direct debit to nest also left their account on the 20th of April 2021. This is a new tax year. According to HMRC manuals: Member contribution made via employer deduction through payroll: The date of payment for a contribution made under Relief at Source, for example to a group or other personal pension scheme, is the same as a payment the member makes direct. For example the date authorised to draw money by direct debit from the employer’s bank account or the date the employer’s cheque is received. “Same as a payment the member makes direct”, in my case, since the direct debit left from my employers account on 20th April 2021 and NEST received the payment on 20th April 2021, for deductions made in jan, feb and March 2021, I would count these 3 payments as part of the 2021-2022 tax year, regardless of what my payslip says, would that be correct?
Posted Fri, 15 Jul 2022 18:00:54 GMT by HMRC Admin 20
Hi ritchieA,

As your pension payment is under the relief at source system, the deemed date of your employers payment is the date of the direct debit.
In your case it is 20/4/21 so relief will be accounted for in the 2021/22 tax year when working out your annual allowance.

Thank you.
Posted Sat, 16 Jul 2022 14:00:25 GMT by ritchieA
Dear HMRC, Thank you for your response, Please clarify these 3 points for me: 1) From your response, Does the "deemed date of your employer's payment" refer to both the employer and employee contributions? 2) From HMRC manuals referring to deemed date for Relief at source schemes, "For example the date authorised to draw money by direct debit from the employer’s bank account" - Does date authorised to draw money by direct debit from the employer's bank account mean the same thing as the date that employer's bank account show the direct debit leaving the account, or is it that the date of authorisation is a separate thing that occurs prior to the actual direct debit amount leaving the bank account. 3) In my scenario, since the direct debit left from my employers bank account on 20th April 2021 and NEST received the lump sum pension contribution payment on 20th April 2021, for deductions taken from my salary in jan, feb and March 2021. I would claim for higher rate tax relief on these 3 payments as part of the 2021-2022 tax year self assessment and not 20/21 tax year as HMRC views these pension contributions as being made on 20/04/21 which is part of 21/22 tax year. Once again, Many Thanks. RitchieA
Posted Wed, 20 Jul 2022 14:08:20 GMT by HMRC Admin 10
Hi
1. this would be both.
2. it will be the date the direct debit is authorised as some times the date falls on a weekend and the money is then not taken until the Monday. 
3. Yes you will claim in 21/22.
Thankyou.
Regards.
Posted Wed, 20 Jul 2022 18:23:56 GMT by ritchieA
Hello HMRC, 1) So how can someone find out the date that the direct debit is authorised? 2) I only exceed the 40% threshold by a small amount in 2021-2022, meaning that the extra tax relief I will be able to claim back is miniscule, my gross annual contribution including employers contribution is less than £3500 and my lifetime contribution stands at only £9500. So I am at no risk of exceeding these allowances, in scenarios like this, do I have the option to leave out my pension contributions on my self assessment and opt to not claim the miniscule amount of extra relief? As I feel like the hassle of trying to ask employers and pension scheme for all these dates just seems like it is not worth claiming back the extra little bit of relief. Once again, sorry for the long post
Posted Thu, 21 Jul 2022 13:18:21 GMT by HMRC Admin 10
Hi
HMRC dont have access to that information and you would need to ask the employer/pension company for details.
It is your choice if you wish to pursue it and claim relief on the contributions.
Thankyou.
Regards.

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