Soldato
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Looks like you may no longer need to do a tax return for child benefit after this summer https://moneyweek.com/personal-finance/child-benefit-tax-return-charge-changes
HMRC - 2023-2024 - Tax Returns?
- Thread starter Malt_Vinegar
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Hopefully (although knowing HMRC probably not) this will apply to this tax year as it'll save me messing about filling in a self assessment for being about £300 over the lower limit.
Soldato
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I'm in an apparently-never-ending battle with work about reclaiming the additional tax on my pension. Very annoying. Scottish Widows think we're on net pay. HMRC think we're on relief at source. So SW are giving us the pension relief up to 20% automatically and we have to claim back the other 40% tax...but HMRC think we're already getting in.
It's gone from me to HR to the payroll company to and independent financial advisor for the company, back to SW and still no resolution. I calculated today that they owe me £3,750, which is nice. But I want it in my account, not in theirs.
It's gone from me to HR to the payroll company to and independent financial advisor for the company, back to SW and still no resolution. I calculated today that they owe me £3,750, which is nice. But I want it in my account, not in theirs.
Relief at source is when you contribute after tax and get the 20% relief applied by the provider and claim back the rest (terminology is confusing to me also)
Did you submit an SA tax return for the additional relief and it was rejected by HMRC? Wow...
Soldato
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Ah ok! So I have it the wrong way round, sorry!
I haven't submitted anything yet as HMRC don't believe anything is wrong. Work have to sort it out.
If you're sure it's a relief at source scheme I'd just claim the additional relief in your SA - or if you don't do one submit at https://www.gov.uk/guidance/claim-tax-relief-on-your-private-pension-payment
If something goes wrong then take it up with work/HMRC.
Apparently HMRC when it comes to savings interest base your coding on last years interest rather than zeroing it each year ans waiting for the building societies etc. to notify as they are required to do.
This leads to inaccurate coding and tax payments and rework. Interest payments are never the same year on year. Seems stupid to me.
This leads to inaccurate coding and tax payments and rework. Interest payments are never the same year on year. Seems stupid to me.
Soldato
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I am but HMRC don't believe me. They won't do anything until it's resolved unfortunately.
I do need to do an SA as I claim child benefit, but I have no idea what to do. Might have to get my brother-in-law to help me as he's a tax accountant.
I think I'm getting the wrong end of the stick here, but do they pay interest on your pension they're hanging on to?
No, on savings accounts which accrue interest varying each year. We are.putting as much as we can into ISA currently but HMRC not waiting to be informed of the change just assume that because I had so much interest last year that this year will be the same. This has happened each year since 2019 at least and causes much argument as to why my code seems to change several times in a year as they claw back unnecessarily.
What are you expecting HMRC to do? Why do they need to do anything?
I was on a relief at source scheme for a couple of years and I simply submitted my SA accordingly and got the extra relief. In my case it was via a reduction in tax owed. If you don't owe any tax then it will be via a refund. They will likely update your tax code for the following year to account for the expected relief. The SA forms related to pension contributions are pretty straight forward.
Soldato
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HMRC think we're on net pay and the pension provider thinks we're on relief at source, so they won't accept any tax claim until they also know I'm on relief at source. Their response currently is, you have nothing to claim as you're on net pay.
I think you're just being misled. Scottish Widows wouldn't be able to get paid the 20% relief from HMRC that they apply for on your behalf if HMRC had some kind of issue with the scheme.
Soldato
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That's true. But if HMRC don't believe you're on relief at source when you contact them, you're going to be stuck like I am
I've no need to contact HMRC, why do you need to contact them? At the risk of going around in circles, you're not stuck! You haven't applied for the relief.That's true. But if HMRC don't believe you're on relief at source when you contact them, you're going to be stuck like I am
Soldato
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We are going round in circles because you are not me
Soldato
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I think I posted in this thread, it appeared that we hadn't been receiving higher earner's tax relief, and I pursued this at work. I was convinced that HMRC owed me around £4k, although they believed we were on relief at source.
Well, it turns out we are on relief at source and that Scottish Widows have been giving us double relief!
They haven't informed us what the next steps are other than that a decision on how to proceed is yet to be made, and that going forwards, we are going to be relief at source.
I'm shocked. Turns out I won't be receiving £4k, and my pension is about to be cut down by I guess about the same value.
Even worse, I think it might be the responsibility of the business to act, although Scottish Widows should also be heavily involved. No idea what's going to happen.
Well, it turns out we are on relief at source and that Scottish Widows have been giving us double relief!
They haven't informed us what the next steps are other than that a decision on how to proceed is yet to be made, and that going forwards, we are going to be relief at source.
I'm shocked. Turns out I won't be receiving £4k, and my pension is about to be cut down by I guess about the same value.
Even worse, I think it might be the responsibility of the business to act, although Scottish Widows should also be heavily involved. No idea what's going to happen.
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Got a letter through today saying i had not paid enough tax.
I love how they word it. I am PAYE, nothing odd about my circumstances, and yet they always get it wrong.
Its £1700 this time, and they are taking it out of my next 12 months of tax, unless i fancy paying it upfront.
I love how they word it. I am PAYE, nothing odd about my circumstances, and yet they always get it wrong.
Its £1700 this time, and they are taking it out of my next 12 months of tax, unless i fancy paying it upfront.
Not sure why any of that precludes you claiming higher rate relief on the relief at source scheme. Relief a source is always only 20% claimed by the provider.
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Chances are he’ll get away with it too