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Where Taxpayers and Advisers Meet

SIPP Contribution at end of year & self assessment

dimke
Posts:21
Joined:Mon Nov 03, 2014 4:49 am
SIPP Contribution at end of year & self assessment

Postby dimke » Sat Jan 22, 2022 10:10 pm

I contributed £10k to my SIPP just before the end of the tax year (April 1) and a pension contribution tax relief of £2.5k appeared in late May. I am filling in the self-assessment, where it asks "Payments to registered pension schemes", as it states to enter payment & basic rate, I am to enter £12.5k there, regardless of when the tax relief got deposited to the account? I am using cash basis accounting, so for everything else the date when the money goes in/out is what matters.
Thanks!

robbob
Posts:3208
Joined:Wed Aug 06, 2008 4:01 pm

Re: SIPP Contribution at end of year & self assessment

Postby robbob » Sun Jan 23, 2022 11:03 am

Hello dimke

You ask a very sensible question - i have never heard any mention of payments being split , having said that i can't remember ever having seen this question being asked before.

It wouldnt make much sense to ever split the payments even though as you say the tax relief is turning up later - the notes to the tax return provide some comfort in this regard ref box 1 where they comment that you take amount paid and gross it up - so the notes are saying you are fine entering fulled grosssed up value.

Use the pension certificate or receipt you get from the administrator to fill in box 1 or work out the figure by dividing the amount you actually paid by 80 and multiplying the result by 100.
I am using cash basis accounting, so for everything else the date when the money goes in/out is what matters.
You should be careful intepreting anything on tax return that is not being said - eg if you are referring to using cash basis for sole trader or for cash basis for property income - the notes will only be referring to that specific section of the return only. Even if you choose to use cash basis for sole trader you might not choose cash basis for rental and the rest of the return boxes would have their own notes and would start from scratch ref calculations even if you have chosen cash basis elsewhere.

dimke
Posts:21
Joined:Mon Nov 03, 2014 4:49 am

Re: SIPP Contribution at end of year & self assessment

Postby dimke » Sun Jan 23, 2022 1:22 pm

Thanks for the reply. For reference, I am using a vanguard SIPP (mainly for their S&P 500 ETF), and the tax payments usually appear 6-7 weeks after my own transfer, so for a while the "total contributions" on the overview don't show the gross amount.


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