Took the words straight off my keyboard.
HMRC - 2023-2024 - Tax Returns?
- Thread starter Malt_Vinegar
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Soldato
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Excuse my ignorance, but do you always need to claim it whether you're on net pay or relief at source?
Edit: reading around, if you're on net pay, you are given full tax relief automatically, but something else has happened to us. The payroll has treated us as relief at source. Pension provider has treated us as net pay. Therefore, we've had double relief up to 20%, but not got the higher earner's tax relief. So I need to do a claim still.
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The situation you describe actually sounds like you'd be getting no relief rather than double relief.
If you're on net pay, your contribution is made from gross pay. Your employer will make this payment, untaxed, to your pension provider. So there's nothing for either you or your pension provider to claim back. Hard to see why your provider treating it as net pay would result in a benefit you shouldn't have, as they don't need to claim anything in this case.
In a relief at source scheme, your contributions are made after tax. So your pension provider will almost always claim 20% for you automatically and you can claim the difference yourself if you are a higher rate tax payer.
So the question is:
Did your employer make a payment to your pension provider from your gross pay or was it from your pay after tax? This should be easy enough to verify from your payslip.
- If it was gross pay and it's confirmed that your provider claimed another 20%, no doubt that will need to be paid back somehow.
- If it was made from your after tax pay then you should claim the extra relief as a higher rate tax payer and make sure your provider is claiming the standard 20% on your behalf. If they aren't you can claim that too.
Soldato
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Honestly, I'm so confused by the whole thing. But, I think I have worked out what's going on - it's actually simple. We've been given relief at source, but the pension provider has been giving us additional relief. They will claw that back.
Are you able to determine from your payslip whether the payment made to your pension provider was before or after tax?
Soldato
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Taxable income has the pension contribution deducted from it
If your taxable income has been reduced then sounds like a salary sacrifice or net pay scheme. So, no need to claim anything back as you never got taxed on it in the first place.
If your provider has been incorrectly claiming some relief on your behalf (e.g. incorrectly set up as a relief at source scheme and they've been claiming 20% for you) I don't know how they will sort it out but strongly suspect the incorrectly applied for relief would have to get paid back to HMRC as you suggested.
Soldato
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Thanks Rob. You aren’t quite as evil as your name suggests
Hi all recieved an email this morning from gov asking me to login to go gateway to check..apparently I owe £500 in tax ?? I have no idea why. I wasn't over any PSA savings allowance on 2024-2025. How can I get them to recheck this and find out where the error has occurred ?
Can I also speak to the finance team / HR in work ?
Can I also speak to the finance team / HR in work ?
Without seeing the email I'd say it's 99.9% a scam, the HMRC send letters, a P800 tax calculation, not emails if there's an over/under payment of tax.
Is there a helpful link in the email for you to login to the Govt Gateway? Don't click it.
If you're just employed, and don't fill in self assessments, any minor tax discrepancy like this would be sorted through your tax code anyway.
Looking at my end of year P60 from last year, and also doing a check, it seems that the error has come from work possbibly not paying the right tax ?
IE if i look at my P60 - it says tax deducted - certain amount, if i then cross check this with my government gateway login, the difference in the value missing is what they are trying to re-coup
so now its apparently my fault for no paying the right tax when someone should have done this ? do i now need to speak to my HR/ Finance department in work ?
the gov websites states my code will be adjusted next year meaning next april i will have to start paying more tax to correct it, or i could pay £523 now
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You can sign up for online tax letters and then they do send emails for PAYE code changes related to underpayments but never any details in the email, they tell you to log in.
Just spoke to HMRC, they said they cant adjust anything in this year, however april next year i will start paying £43 more tax until its paid off. I owe £523
or i can do a lump sum payment or smaller manual payments to pay it down
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True, it's was the £500 owed in tax (in the email) that was the red flag, but re-reading @DJMK4 post he doesnt actually say where he got that info, ie: from the email or after he'd logged into his GG anyway.
Do you have any BIK from the company?
Sure, if you want to find out why it happened.
Yea, dont worry either pay it off now or it'll all get corrected automatically via your tax code.
Will HMRC allow me to make a couple of payments over this year manually ? via card? maybe
they said they cant adjust it in this years tax code, it will have to start from april next year
BIK ? i assume it may have been something to do with the bonus which tipped it over, but the finance team should have made sure the correct amount of tax was paid here
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Just seen this on a few websites, is this an option if the error lies with miscalculation from employer?
"
If HMRC calculate that you have not paid enough tax but you think that the underpayment arises because your employer or pension provider failed to operate Pay As You Earn (PAYE) correctly, you can challenge HMRC. You can request that HMRC check whether they should be asking your employer or pension provider to pay it instead. Here we explain how you can do this."
"
Employer errors in deduction of Pay As You Earn tax
The vast majority of employers and pension payers calculate Pay As You Earn (PAYE) deductions accurately and correctly pay the tax to HM Revenue & Customs (HMRC). However mistakes can be made.
If you think that your employer or pension payer has made a mistake in the deduction of PAYE tax which has resulted in the issue of a Tax Calculation (P800) to you, then in some limited circumstances you may not have to pay the underpayment caused by that error.
The circumstances are that your employer or pension payer did not take reasonable care to operate PAYE and the error was not made in ‘good faith’. In describing a ‘failure to take reasonable care’, this means failing to follow proper instructions to deduct PAYE tax from your pay or by failing to use Tax Code notices issued to them. Not made in ‘good faith’ means that an employer or pension payer may have known that they were not deducting the right amount of tax from you but took no action to correct their mistake."
You owe the tax just pay it, you're not losing anything just shifting the money from this year to next year.
That quote looks to be for them maliciously messing about, this would almost certainly come under a "good faith" miscalculation.
That quote looks to be for them maliciously messing about, this would almost certainly come under a "good faith" miscalculation.