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Where Taxpayers and Advisers Meet

Back dated claim on pension relief

Jupiter01
Posts:51
Joined:Tue Jul 11, 2023 8:11 pm
Back dated claim on pension relief

Postby Jupiter01 » Wed Jul 12, 2023 4:26 pm

Being the numpty that I am, I have only been entering my pension contribution as seen on my payslip into my Self Assessment. I have since learnt that, this should also include the tax relief that the pension provider adds on to this. I will enter the correct figures for my current tax return, year ending 2023. I understand that I can also claim for the bits I missed in the last 4 years. Is this correct?

If yes, is that 4 years plus the year ending 2023?

Thanks in advance.

AGoodman
Posts:1723
Joined:Fri May 16, 2014 3:47 pm

Re: Back dated claim on pension relief

Postby AGoodman » Wed Jul 12, 2023 4:54 pm

I'm not sure that's right. I thought that pensions contributions shown on payslips are usually shown gross, do not suffer any tax at source, and the pension administrator does not claim any additional relief.

It is personal pension contributions (such as SIPPS) which are paid in net and need to be grossed up.

there may of course be exceptions

[this is all worth checking, as with anything on this forum but particularly so, as it's not my area]

Jupiter01
Posts:51
Joined:Tue Jul 11, 2023 8:11 pm

Re: Back dated claim on pension relief

Postby Jupiter01 » Wed Jul 12, 2023 5:07 pm

My pension contribution are paid out of my wages after tax - relief at source method - hence, the pension provider fetches an automatic 20% from the government and I then claim a further 20% in my SA. I am a high rate tax payer. Historically, I have entered the contribution figures in my payslip. That is wrong as I understand it. I should be entering into my SA, my contribution (as specified in payslip) plus the 20% government relief added by the pension provider. Please correct me if I have misunderstood.

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Back dated claim on pension relief

Postby darthblingbling » Wed Jul 12, 2023 6:49 pm

If your workplace scheme is a relief at source scheme (many aren't these days) then yes you need to gross up and include on the return.

Jupiter01
Posts:51
Joined:Tue Jul 11, 2023 8:11 pm

Re: Back dated claim on pension relief

Postby Jupiter01 » Thu Jul 13, 2023 3:30 am

If your workplace scheme is a relief at source scheme (many aren't these days) then yes you need to gross up and include on the return.
Thanks. Have I correctly understood the facility go back four years? Is it the current year plus the previous 4 years that I can claim for?

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Back dated claim on pension relief

Postby darthblingbling » Thu Jul 13, 2023 7:43 am

Correct, albeit for 2020/21 and earlier it will need to be via an overpayment relief claim.

Jholm
Posts:350
Joined:Mon Mar 11, 2019 4:22 pm

Re: Back dated claim on pension relief

Postby Jholm » Thu Jul 13, 2023 8:39 am

If you are taxed AFTER the pension contributions through your wages, then you are already getting FULL relief. No additional relief to claim. This is only when JUST basic rate tax is 'topped up'.

Jupiter01
Posts:51
Joined:Tue Jul 11, 2023 8:11 pm

Re: Back dated claim on pension relief

Postby Jupiter01 » Thu Jul 13, 2023 9:10 am

Correct, albeit for 2020/21 and earlier it will need to be via an overpayment relief claim.
Can you clarify this please?
I was planning to put the 4 years worth of relief that I missed along with the correct figures for this year in the pension contribution relief box that appears on the SA. This one:
"Payments to registered pension schemes (also known as PPR) where basic rate tax relief will be claimed by your pension provider (called 'relief at source'). Enter the payments and basic rate tax:"

Additionally, I was going to enter the missed figures in here again:
"Total of any 'one-off' payments to registered pension schemes included in the 'Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider' box:"

I think the second box will not crew up my tax code for next year and they will understand the one-off nature of these contributions. I can also add something n the comments to explain this away.

Would that be okay? Thanks for your support

Jholm
Posts:350
Joined:Mon Mar 11, 2019 4:22 pm

Re: Back dated claim on pension relief

Postby Jholm » Thu Jul 13, 2023 1:30 pm

No, you will need to report each year's contributions in the year to which they relate.

21/22 and 22/23 can be amended online.

Earlier years have to be done by paper via an overpayment relief claim.

However, see my comment above, as it sounds like you are already getting full relief if the contributions are made before tax.

Jupiter01
Posts:51
Joined:Tue Jul 11, 2023 8:11 pm

Re: Back dated claim on pension relief

Postby Jupiter01 » Thu Jul 13, 2023 1:39 pm

No, you will need to report each year's contributions in the year to which they relate.

21/22 and 22/23 can be amended online.

Earlier years have to be done by paper via an overpayment relief claim.

However, see my comment above, as it sounds like you are already getting full relief if the contributions are made before tax.
Thanks again. I haven't submitted 22/23 yet so will enter the correct figures for this. I will amend last years tax return.
I will then complete an overpayment relief claim for the 2 prior years. May have some more questions on this....

My pension contributions are paid after tax and hence, using the relief at source method. I get the automatic 20% from pension provider but need to claim the additional 20% through SA.


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