Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 28 Jun 2023 16:16:18 GMT by
I have been putting in my preliminary figures for 22-23 pending my P11d from my employer. One item I have noticed is that my one off pension contribution I made this year doesn't seem to be included in my calculation and it's stating that I therefore owe tax instead of being due a refund. I am well within my higher rate tax limit for the year so I don't believe that's the cause. Is there a reason why this figure is seemingly ignored?
Posted Mon, 03 Jul 2023 16:31:59 GMT by HMRC Admin 10 Response
Hi
The payment should show as an adjusted to the basic rate band.
Thankyou.
Posted Mon, 03 Jul 2023 17:25:01 GMT by
Is there a reason you haven't explained what type of pension contribution you have made? Most contributions which go on a Self Assessment return are made under the relief at source (RAS) method and don't result in any personal tax saving. The tax benefit is from the basic rate tax relief the pension company adds to your (net) contributions.
Posted Tue, 04 Jul 2023 13:00:05 GMT by
My understanding is that as a higher rate tax payer I can claim back the additional 20% for any additional contributions (as I have done in previous years) under relief at source. I have a work pension and a private pension (additional contribution was made to my private pension) who claimed back the basic rate under RAS so it is up to me to complete self assessment for higher rate relief. It's the first time I have made a one off contribution so was expecting to see this reflected as the provider claimed the basic rate back.
Posted Tue, 04 Jul 2023 17:17:25 GMT by
There is no "additional 20%". The amount of extra tax relief depends on your overall circumstances. You might get 20%. You might get virtually nothing. You might get more than 20%. If you have completed the return correctly it might simply be you owe tax on something else or received relief provisionally via your tax code. Have you checked the tax calculation shows your basic rate band has been increased for the gross RAS contribution?
Posted Wed, 05 Jul 2023 09:19:01 GMT by
Well according to this there is... https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief If I put the amount of the one off payment, it says I owe tax due to my ongoing pension contributions being lower this year than last (which is correct). If I put the one off payment amount into the ongoing contributions box, I'm due a refund of the amount minus what I owe, again correct by my own calculations. In this instance, I made a one off contribution of £2000, the pension provider claimed RAS of £500 for the basic rate of 20%, therefore I'm entitled to claim relief for the additional £500 through self assessment up to the amount I pay 40% tax on (which the total of all my contributions for last year are significantly less than). Why would putting it in ongoing vs one off result in what I've seen, Doesn't make any sense as I'm either entitled to the relief or not.

You must be signed in to post in this forum.