TSeeker

I contacted HMRC helpline but they said they wouldn't be able to do it without proof of contribution. And even if they could they could only do so up to the amount of 10000 GBP. Is that true that there is such a rule? I don't have any documents because it's not a full lump-sum contribution. Hypothetical example: I plan to deposit 30000 GBP over the course of a year. Therefore, neither do i have any document showing the figure of 30000GBP nor is the amount less than 10000GBP. Is it true that in this case HMRC cannot alter my PAYE code straight away and I need to wait for a year to claim the refund? That sounds bad because you are forcing me to use a tax unfriendly PAYE code for the tax year making the SIPP contributions difficult. I know I can claim refund after a year, but that doesn't solve my much lower take-home due to an unfriendly tax code in the mean time giving me a much lesser take home pay in order to then invest.

I'm planning to invest in SIPP from this year. SIPP relief for higher rate taxpayer can only be claimed via self assessment next year. I need to wait for a year to get the relief. Instead, can I pre-calculate the relief, deduct it from my gross and tell HMRC the expected taxable income for the year? That way my new tax code will allow for more take-home salary from the employer right away and I don't have to wait for a year to claim the relief. Any further payments/refunds can be made in next year's self-assessment anyway. Hypothetical example: My gross salary is 125K GBP per year. I want to invest 25K in SIPP of my choice. To do that I only need to pay 20K as 5K will be topped up automatically (relief at source @20%). However the rest I need to claim a refund from HMRC next year via self-assessment. Instead I just calculate how much this refund would be (there are websites to do this). Let's say this is X. Can I tell HMRC that my actual taxable income for the year is = 125K - X ? This way the tax code is applied immediately and I get a higher take home pay instead of waiting for a year to claim X back. When filling the self-assessment, if there's any payment or refund still pending due to any reason, that'll of-course be known then and can be paid/refunded. Is this strategy possible?

Any updates on this? Thanks

1. I have been giving my wife money regularly. She has been putting it into her ISA and Premium Bonds, gains from both of which are tax free. 2. Her investments grew and we decided to pay off mortgage and other bills using it and my money in my account. 3. So she gave back a lumpsum into my account and I used it for various expenditures. As I understand this counts as money being exchanged between spouses themselves (husband and wife in this case) and has no tax implication, even if one of us were to die within 7 years of such exchanges (no Inheritance Tax etc). Can you pls confirm that this is true and we don't have to maintain any records of such exchanges for any kind taxation (like Inheritance tax on death of a spouse within 7 years etc)? Also can you pls confirm that neither of us have to put any of this in our respective self-assessments?

Also do we need to mention about any of these in the self-assessment: 1) principal amount withdrawals from own premium bond account 2) principal amount withdrawals from own child's premium bond account when the child is still < 16 yrs and the parent is registered as the responsible person for the account 3) the prize money won from either of the said accounts above, credited to the parent's account Or does HMRC automatically understand that these transactions have no tax implications and none of these need to be declared in the self-assessment?

I know that cashing in the winnings or the entire principal amount from Premium Bond Account for self has no tax implication. However is this true for a Premium Bond account opened for a child? Eg. The parent opened an NS&I Premium Bond Account for their child and put in 50K GBP from an account which belonged to the said parent. After sometime the parent decides to withdraw all of 50K GBP back into one of their own accounts. Assuming the child is still under 16 yrs age and the parent was still the legal custodian of the bonds, does this withdrawal have any tax implication on the parent?