Pension Contributions. Claiming back higher rate tax relief.

[chimster]

I gather that tax relief on pension contributions is based on the basic tax rate. If you are a higher rate tax payer you can claim back the extra relief. I self cert so I assume that I can do it then. I have never done this so how far can I go back to claim? I have a company DC pension and I have had an avc non of which I have claimed for. Slipped up I think, can I recover the situation?

[sumo69]

Doesn't the contributions to the company scheme get deducted before your tax/nic is calculated?

If you have been doing self-assessment tax returns, you can "repair" your return by writing to HMRC within 4 years from the end of the tax year which you need to correct - so if you write now you could amend years ended 5th April 2010, 2011 and 2012 - you are 4 weeks too late for 2009.

If you want some help, PM me.

David

[PurpleMoonlight]

With your DC pension scheme it will depend if this is an occupational pension scheme or a group personal pension. If the former then the contributions are deducted from salary before income tax is assessed (not NI though) so you receive full tax relief at point of payment. If it's a group personal pension the net of basic rate tax relief contribution (£8 net on £10 gross) will be deducted from your net pay, the basic rate tax will be credited to the personal pension by the provider and you need to claim any higher rate tax relief via your annual tax return.

With your AVC, again it depends if you are paying these to an occupational pension scheme or free-standing AVC policy. The same method as above applies though.

Edited by PurpleMoonlight on Friday 3rd May 17:32

[Zigster]

PurpleMoonlight said:

With your DC pension scheme it will depend if this is an occupational pension scheme or a group personal pension. If the former then the contributions are deducted from salary before income tax is assessed (not NI though) so you receive full tax relief at point of payment. If it's a group personal pension the net of basic rate tax relief contribution (£8 net on £10 gross) will be deducted from your net pay, the basic rate tax will be credited to the personal pension by the provider and you need to claim any higher rate tax relief via your annual tax return.

With your AVC, again it depends if you are paying these to an occupational pension scheme or free-standing AVC policy. The same method as above applies though.

Edited by PurpleMoonlight on Friday 3rd May 17:32

My company pension scheme is a GPP and contributions are paid over gross - i.e. I don't have to claim back extra tax relief via my tax return. Admittedly that's because all contributions are paid via salary sacrifice, but it still might not be as simple as GPP vs occupational pension scheme.

[PurpleMoonlight]

Zigster said:

My company pension scheme is a GPP and contributions are paid over gross - i.e. I don't have to claim back extra tax relief via my tax return. Admittedly that's because all contributions are paid via salary sacrifice, but it still might not be as simple as GPP vs occupational pension scheme.

True, but salary sacrifice is relatively rare and if the OP contributed that was they chances are they would know all about it.

[chimster]

Thanks for the feedback guys.

[Zigster]

PurpleMoonlight said:

Zigster said:

My company pension scheme is a GPP and contributions are paid over gross - i.e. I don't have to claim back extra tax relief via my tax return. Admittedly that's because all contributions are paid via salary sacrifice, but it still might not be as simple as GPP vs occupational pension scheme.

True, but salary sacrifice is relatively rare and if the OP contributed that was they chances are they would know all about it.

Really? Salary sacrifice is very common. If the OP doesn't know how to claim back the higher rate tax relief then he wouldn't appear to be particularly knowledgeable in this area (no offence to OP intended) so there would seem to be a reasonable likelihood that he pays his pension contributions via salary sacrifice..