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otherwayup Posts: 65 Forumite
4 June at 5:00PM edited 4 June at 5:02PM in
Hi
I have a DC workplace pension, with regular contributions made by employer via salary sacrifice.Therefore the scheme is NOT setup to claim and add the basic rate tax relief.
Last tax year I made separate additional single contribution from my bank account of 22k (the amount of income that I paid 40% tax on last tax year).
I sent a letter in to HMRC in May requesting refund of both the Basic and Higher tax reliefs and stated that the scheme had not credited any tax relief to the fund. I included fund statement showing transactions and bank statement showing my payments.
However, the HMRC new tax calculation has only resulted in them saying they owe me 4,4k refund (I.e. 20% higher rate relief). The explaination says they increased the amount of Income I pay Basic tax rate on.
I have tried calling HMRC several times, spoke to several people and they just keep pushing the same numbers into the same boxes and coming up with the same 4.4k refund number. Then I get cut-off mid discussion and they don't phone back.
I am expecting to get 8.8k back (correct me if I'm wrong).
How do I explain correctly during a call, or do I give up and do a self assessment tax return for last tax year? Will that actually have appropriate boxes to tick/enter numbers into so I get the full basic and higher relief of 8.8k, or will I end up in the same boat?
Thanks
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hugheskevi Posts: 3,967 Forumite
4 June at 5:20PM
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This is a common problem with HMRC that has been going on for years, although it usually affects public service pension scheme members who make voluntary contributions by lump sum.
There are many threads, this linked thread is quite useful to read through to understand what you will need to do, say and/or write.
The Self-Assessment form has a box for this type of contribution, and then all the tax relief due would be calculated automatically.
otherwayup Posts: 65 Forumite
25 June at 1:58PM
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Problem Solved: If you are trying to claim both Basic and Higher relief refund, do NOT consider trying to make a claim via a letter to HMRC - it will NOT work. Save yourself hours of wasted time and just complete a Self Assessment.
It actually took me less time to complete the online self assessment than it did to write the original letter, get copies of fund statements and post it in.
penners324 Posts: 2,888 Forumite
25 June at 2:13PM
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The pension fund should have added 25% tax on the £22k.
Did you enquire with them why they didn't?
hugheskevi Posts: 3,967 Forumite
25 June at 2:20PM edited 25 June at 2:20PM
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otherwayup said:
Problem Solved: If you are trying to claim both Basic and Higher relief refund, do NOT consider trying to make a claim via a letter to HMRC - it will NOT work. Save yourself hours of wasted time and just complete a Self Assessment.
It actually took me less time to complete the online self assessment than it did to write the original letter, get copies of fund statements and post it in.
Calling or writing to HMRC will work eventually, although it is quite likely that it will not do so immediately as many people have found.
Self-assessment can be quicker, as it is a more certain route that removes the element of HMRC operator error.
It just comes down to how well trained HMRC frontline staff are, and whether dealing with a computer will be preferable. Sadly for many years now HMRC have inadequate processes in place in this area.
otherwayup Posts: 65 Forumite
25 June at 2:24PM
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That's just the way this 'workplace' pension is setup. The regular contributions are from my employer via salary sacrifice, and those correctly do not have anything added (claimed). The old work scheme (same provider)did claim for a previous lump sum I added a few years ago, but this new work scheme's fees are lower than the old one. I guess that is because they have less admin. to do. For info., it's a L&G MasterTrust workplace scheme
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