Anyone claimed higher tax relief on past years' pension contributions?

[Robertf]

Hi all,

I have only recently become aware that my latest workplace pension only applies basic rate tax relief to my pension contributions. As a higher rate tax payer I know now that I can claim relief at the higher rate, and this would apply to my entire contributions, which is not an insignificant sum.

Luckily, having done a bit of research it seems that you are able to make a claim for up to 4 previous years, which covers the entire period I have been contributing to this particular pension.

I've found a pro-forma letter to use to request the relief on these past years, but wondered has anyone else had practical experience in claiming for this relief and if so any tips you might be willing to share?

Thanks in advance all!
Robert

[noTAGlove]

I have done it on an annual basis via my self assessment form. All very straightforward if you have your P60 to hand.

Don’t know what the process is for multi year claims and rebates, but if it is anything like self assessment, I did not find it difficult.

[Chicken Pox]

I have done it on an annual basis via my self assessment form. All very straightforward if you have your P60 to hand.

Don’t know what the process is for multi year claims and rebates, but if it is anything like self assessment, I did not find it difficult.

Indeed straight forwards for year on year self-assessment, but them actually paying it back is getting slower and slower even though it autogenerated what you are owed, it still needs to be "authorised". Weird the hounding, late payment fees and silly interest only appears to apply when you owe them... Also if PAYE they update your tax code to avoid having to submit if earn the same the following year.

[Robertf]

Thanks for this, I do intend to use self assessment going forward.

If I understand right declaring the amounts in the tax return allows HMRC to adjust your tax code for the following year to effectively give you the refund for the current year by raising your tax threshold for the following year?

[Robertf]

Indeed straight forwards for year on year self-assessment, but them actually paying it back is getting slower and slower even though it autogenerated what you are owed, it still needs to be "authorised". Weird the hounding, late payment fees and silly interest only appears to apply when you owe them... Also if PAYE they update your tax code to avoid having to submit if earn the same the following year.

Ah sorry replied to the previous msg, but this makes sense.

[Maysie]

Is that a standard thing employers do for higher rate tax payers? (ie apply tax relief at the basic rate).

If so, I think I may have lost out on a decent wedge of pension cash! Too far to go back now though as it is over 4 years.

[Robertf]

Is that a standard thing employers do for higher rate tax payers? (ie apply tax relief at the basic rate).

If so, I think I may have lost out on a decent wedge of pension cash! Too far to go back now though as it is over 4 years.

Yes its apparently normal practice, even if you have lost out you can claim for the last 4 years so at least you get some of it back, I found this quite helpful:
https://getpenfold.com/news/claim-hi...ion-tax-relief

[Estoril-5]

Hi all,

I have only recently become aware that my latest workplace pension only applies basic rate tax relief to my pension contributions. As a higher rate tax payer I know now that I can claim relief at the higher rate, and this would apply to my entire contributions, which is not an insignificant sum.

Luckily, having done a bit of research it seems that you are able to make a claim for up to 4 previous years, which covers the entire period I have been contributing to this particular pension.

I've found a pro-forma letter to use to request the relief on these past years, but wondered has anyone else had practical experience in claiming for this relief and if so any tips you might be willing to share?

Thanks in advance all!
Robert

Just to clarify, is your current workplace pension Salary Sacrifice? If yes, you dont need to (cannot claim) any relief.

[Estoril-5]

Is that a standard thing employers do for higher rate tax payers? (ie apply tax relief at the basic rate).

If so, I think I may have lost out on a decent wedge of pension cash! Too far to go back now though as it is over 4 years.

Not to be a pedant but the employer doesn't apply the Relief at Source (RAS) its the pension provider.

[Chicken Pox]

Ah sorry replied to the previous msg, but this makes sense.

I recall you can update your salary when know it for the financial year e.g. after pay rise etc and can adjust the code but also assumes still contributing same percentage of salary to pension; I've been upping mine so file each year even if says "I don't need too" otherwise I'd lose the claim back on the difference.

[Chicken Pox]

Not to be a pedant but the employer doesn't apply the Relief at Source (RAS) its the pension provider.

Indeed part of the self assessment gives you formula to calc what the pension company claimed back eg. you put in 10k but for self assess put in 10k x formula (is there some NI relief so not just income tax? I shall remind myself as time to submit again soon!)

[Robertf]

Thanks everyone, I have checked with my employer and they apply only basic relief, so I do need to claim. Luckily I only need to claim for the past 4 years plus the tax year just closed which I can handle via self assessment in due course.