[in Feb 2026 my salary was £54,314, but with Smart Pensions, Shares, etc, my Taxable pay to date was £46,035]
In March 2026 I received a bonus - nicer problems to have - that pushed me into the 40% bracket [Taxable pay £51,645]. I hastily opened a SIPP and funded it with £1,100 believing this would bring my taxable income back below the 40% threshold.
My P60 states £51,645 (obviously) and HMRC have changed my tax code and removed the Marriage Allowance. I've submitted the claim for the tax relief on my SIPP contributions, which has just been received.
HMRCs new calculation states:
Salary £51,645 (correct)
Untaxed interest £16.95 (Covered via Personal Savings Allowance)
Basic rate at 20% on £39,075 = £7,815 ...less the £7,582 I've already paid
No mention of 40% rate (?)
Explanation
Marriage Allowance
You were given more Marriage Allowance than you should have been
Private Pension
You were not given enough tax relief on your private pension. You were given £0, the contributions you made were £1,375
*£1,375 being the full, 40% SIPP relief rate
Do we think this is all just an unfortunate matter of timing, and it'll all sort itself out in the end ?
I'm not sure whether I'm expecting a cheque for my SIPP refund, given that they say I owe them £232.60 (I think the two payments are seperate?)
Should my partner re-apply for Marriage Allowance, now that I plan to start paying into AVCs to keep my salary below the threshold for future years ...will it be rejected based on my last reported income/P60 ? ...and/or should (can?) I apply by post for backdated Marriage Allowance for 2025/26