HMRC - 2023-2024 - Tax Returns?

Well perhaps I'm mistaken but I've been getting the extra relief on top of the 20% for standard tax rate for years but perhaps the companies I've worked for have private pension schemes that work differently?

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That's the section I put it in.

BTW this is not me trying to flex. I'm genuinely trying to see if I can help people with claiming relief that they deserve and are entitled to. I'm not a tax expert so my situation may be different, but worth looking into IMO. :)
 
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My understanding is that if you pay the 40% tax rate then you MUST submit a self assessment to claim the extra 20% as mentioned by @Freefaller otherwise you don't get it. Don't know why but the UK tax system is rarely simple or easy to understand
 
Bluecube said:
My understanding is that if you pay the 40% tax rate then you MUST submit a self assessment to claim the extra 20% as mentioned by @Freefaller otherwise you don't get it. Don't know why but the UK tax system is rarely simple or easy to understand
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This may make the ball ache of having to do it for child benefit slightly more worth it then!
 
Looks like we're talking around a key difference here, two types of PAYE pension contribution methods.


I presume @Freefaller has "at source", where the contribution comes out of your post-tax pay, whereas I have salary sacrifice, where my employee pays it pre-tax, so I avoid it altogether.

A bit more detail here https://www.moneyhelper.org.uk/en/p.../tax-and-pensions/tax-relief-and-your-pension

Seemingly a very important thing to know which one you are on!
 
That's interesting. I must've been on workplace pension schemes rather than personal ones which don't take it at source. Makes sense!

That said I've just checked mine is taken off my salary and THEN I'm taxed... Yet I'm eligible.... I'm confused :cry:
 
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My accountants look after this for my biz. A few years ago HMRC wrote to me asking for 30k in voluntary taxes due to their error. Because it was outside the 4 year time limit my accountants advised me there was no legal obligation or recourse for paying it. The law very clear on it.

They will twist and try to apply rules in their favour so would always recommend getting professional advice (and tax investigation insurance) if you a more complex arrangements.
 
fraseredwards said:
My accountants look after this for my biz. A few years ago HMRC wrote to me asking for 30k in voluntary taxes due to their error. Because it was outside the 4 year time limit my accountants advised me there was no legal obligation or recourse for paying it. The law very clear on it.

They will twist and try to apply rules in their favour so would always recommend getting professional advice (and tax investigation insurance) if you a more complex arrangements.
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Lol. As if anyone would pay 30k just for fun
 
tom_e said:
I can't believe they can't figure this out without needing to do a self assessment and it's not even something they make particularly clear you have to go looking to be told you need to self asses once you're over the threshold.
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As a new dad this is something I also need to look at. Do I wait until the end of the tax year before determining how much might be owed?
 
Freefaller said:
That's interesting. I must've been on workplace pension schemes rather than personal ones which don't take it at source. Makes sense!

That said I've just checked mine is taken off my salary and THEN I'm taxed... Yet I'm eligible.... I'm confused :cry:
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Is it taken off in full or only 80%? That’s the difference between at source and net pay schemes (basic rate relief).
 
It’s only relief at source schemes (where it’s deducted at 80% and basic rate relief gets added back by the scheme) that require claiming back the higher rate tax relief. If yours is a net pay scheme it sounds like you’ve been getting relief twice.

Net pay is essentially how salary sacrifice works - it’s quite rare these days for a scheme to be net pay but not salary sacrifice, typically occupational schemes.
 
Semple said:
As a new dad this is something I also need to look at. Do I wait until the end of the tax year before determining how much might be owed?
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I think so, so as I didn't start receiving it until April 6th this year it'll be my tax return around this time next year that I'll need to submit with figures owed for this tax year.
Currently it should be literally a couple of quid they need back, once that starts going up then I'll be doing some rough maths and putting that money aside throughout the year.

Take all of the above with a table of salt as I'm still trying to 100% get my head around it :D
 
tom_e said:
I think so, so as I didn't start receiving it until April 6th this year it'll be my tax return around this time next year that I'll need to submit with figures owed for this tax year.
Currently it should be literally a couple of quid they need back, once that starts going up then I'll be doing some rough maths and putting that money aside throughout the year.

Take all of the above with a table of salt as I'm still trying to 100% get my head around it :D
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IIRC it's also only 'payable salary' not gross. I.e. for salary sacrifice it's the figure after salsac that determines how much tax/ni/sl is paid on. In other words if your gross was over the threshold and you made additional pension contributions to bring you under the threshold then no high income charges would be due. Also take with a pinch of salt ;)
 
Malt_Vinegar said:
Is anyone else nervous about 2023-2024?
HMRC have told me that I no longer need to do a return after last year. It looks like the thresholds have changed, and yet, despite having a reference and a note saying I no longer need to do a return, dated today, I did get a letter from them earlier this month warning me of the deadlines for a return.
Is this just a needless extra letter they send to anyone who ever has done a return, regardless of whether they actually need a return to be done, just as a reminder of the deadlines?
It would be really nice for once (as a simple paye earner) I did not get asked to pay back a shed load of tax each year :D
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I had an issue earlier in the year where I was on an HMRC system for PAYE, and one for Self Assessment. It meant I had my tax bill well understood from my own maths via SA; and then PAYE gave me another bill.

Through a phone call this was recognised and corrected - I now just have a PAYE bill and they deleted the SA.

So it depends on whether you want to do the maths (and then you may as well do a SA) to understand your potential liability; or just wait until the PAYE bill comes through the door.

Obviously whether you owe tax is a function of how much you earn, and whether you've told HMRC a roughly-right salary estimate (assuming what your employer gives is incorrect - mine excludes bonus for example so I go in and override).
 
Zefan said:
Looks like we're talking around a key difference here, two types of PAYE pension contribution methods.


I presume @Freefaller has "at source", where the contribution comes out of your post-tax pay, whereas I have salary sacrifice, where my employee pays it pre-tax, so I avoid it altogether.

A bit more detail here https://www.moneyhelper.org.uk/en/p.../tax-and-pensions/tax-relief-and-your-pension

Seemingly a very important thing to know which one you are on!
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Minor point close to VED/Road tax debate - but salary sacrifice is a third type of thing altogether. That's where employers agree to pay you less to save on NI and then pay the difference + usually a % of their saving directly into your pension.
 
Semple said:
IIRC it's also only 'payable salary' not gross. I.e. for salary sacrifice it's the figure after salsac that determines how much tax/ni/sl is paid on. In other words if your gross was over the threshold and you made additional pension contributions to bring you under the threshold then no high income charges would be due. Also take with a pinch of salt ;)
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Yeah that's my understanding as well.
 
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