This tax year I started overpaying my pension contributions because I have a small pension pot for my age and it's quite tax efficient (on paper) to do so.
However the issue I have is that my net pay is a lot lower than it should be because I'm having the 'normal' amount of tax deducted under PAYE as if I was earning the full taxable income. I'm actually paying more in income tax than my net pay right now,
I don't really know how to get this sorted out, I can do a self-assessment tax return at the end of the tax year but this introduces a big delay in getting the money back, the last time I contacted HMRC regarding an a one-off lump sum pension contribution I made that was basically their advice, wait for April then do a tax return, surely there has to be a better way when it's a regular pension amount going out each month? One of the reasons I changed to pension overpayments via PAYE rather than accumulating cash and then doing lump sums was I thought that would 'sort itself out' in a more automated way from a tax perspective.
Does anyone know how to make this work properly, should they be updating my tax code to say my tax free allowance is much higher and if so how do I convince them to do this instead of just asking for a retrospective tax return, wait a few months and maybe get a cheque in the post?
However the issue I have is that my net pay is a lot lower than it should be because I'm having the 'normal' amount of tax deducted under PAYE as if I was earning the full taxable income. I'm actually paying more in income tax than my net pay right now,
I don't really know how to get this sorted out, I can do a self-assessment tax return at the end of the tax year but this introduces a big delay in getting the money back, the last time I contacted HMRC regarding an a one-off lump sum pension contribution I made that was basically their advice, wait for April then do a tax return, surely there has to be a better way when it's a regular pension amount going out each month? One of the reasons I changed to pension overpayments via PAYE rather than accumulating cash and then doing lump sums was I thought that would 'sort itself out' in a more automated way from a tax perspective.
Does anyone know how to make this work properly, should they be updating my tax code to say my tax free allowance is much higher and if so how do I convince them to do this instead of just asking for a retrospective tax return, wait a few months and maybe get a cheque in the post?