Thank you for concise explanation, I've spent all day reading HMRC's website & they do not make this clear at all. Salary sacrifice is covered but the most important thing (on how it's value is derived) is not on there. Thanks again.
Hi, thank you for the video!! question please, I am an high tax payer in the UK, and I just made a one off 25K contribution to my pension plan, how do I claim the pension benefit? thanks!!
So based on your example video, I am a 40% tax payer, I pay in £4000, which becomes £5000. So on my SA100 for my private pension one off payment do I put in £4000, £5000 or £6000 please? As some online guides say to add 20% to total contribution, but for clarity purposes I am a 40% tax payer, have paid in a 4k one off contribution, which became 5k with 20% tax relief, so what amount do I enter on my SA100 please? Thanks in advance. :)
Hi Justin, great video! In your example of Sarah’s £4k contribution (which becomes £5k which additional tax relief) - would that be her own deductions or would it also include any top up from her employer? Very common that UK employers do a 5% / 3% split (5% employee, and 3% to up from employer).
If you made a pension contribution in one tax year (in March), but receive the 20% relief in the following tax year (in April), do the amounts go down in the years you received them, over the 2 tax returns, or do you declare them both in the earlier tax return? Thank you.
If Sarah only earns £100 into the higher rate band, then her additional contribution cannot be more than £100. So £1000 is for simplification in the explanation.
I worked one year beyond state pension age then retired. I went into 40% tax band by £4000. I paid £18785 into private sipp and got basic 20% relief. Now trying to claim the 40% bit. How will I get it paid, when I am retired and stopped paying into sipp?
If you call HMRC & tell them you want to claim higher rate tax relief on your private pension contribution, they should send you a cheque for the difference. You might need to call couple of times as the first operator i spoke to insisted i write in but when i called the 2nd time they took info over phone & recalculated 22/23 tax calc & sent my cheque for higher rate relief rebate.
Do you have any questions about how to calculate pension contribution tax relief?
I was told if you do not usually fill in a return you can call HMRC to sort the additional relief
I wondered about non tax payers below personal allowance... Thx
Many thanks Justin, simple explanation of a complex issue.
Thank you for concise explanation, I've spent all day reading HMRC's website & they do not make this clear at all. Salary sacrifice is covered but the most important thing (on how it's value is derived) is not on there. Thanks again.
Your videos are always interesting and topical.
Hi, thank you for the video!! question please, I am an high tax payer in the UK, and I just made a one off 25K contribution to my pension plan, how do I claim the pension benefit? thanks!!
Two ways, either complete a tax return or write a letter, see here for details www.gov.uk/tax-on-your-private-pension/pension-tax-relief
@@TheRetirementCafe thank you!!!
Really good advice Justin and as it went on I was thinking about salary sacrifice. Good to see you are going to make a video on that too 👍🏻
So based on your example video, I am a 40% tax payer, I pay in £4000, which becomes £5000. So on my SA100 for my private pension one off payment do I put in £4000, £5000 or £6000 please? As some online guides say to add 20% to total contribution, but for clarity purposes I am a 40% tax payer, have paid in a 4k one off contribution, which became 5k with 20% tax relief, so what amount do I enter on my SA100 please? Thanks in advance. :)
£5000
Hi Justin, great video! In your example of Sarah’s £4k contribution (which becomes £5k which additional tax relief) - would that be her own deductions or would it also include any top up from her employer? Very common that UK employers do a 5% / 3% split (5% employee, and 3% to up from employer).
If you made a pension contribution in one tax year (in March), but receive the 20% relief in the following tax year (in April), do the amounts go down in the years you received them, over the 2 tax returns, or do you declare them both in the earlier tax return? Thank you.
Think labour will remove the tax relief by change the allowance or stop the 40% level ?
I've given up predicting anything! Just work with what the current rules are and make the best choices.
If Sarah only earns £100 into the higher rate band, then her additional contribution cannot be more than £100. So £1000 is for simplification in the explanation.
I worked one year beyond state pension age then retired. I went into 40% tax band by £4000. I paid £18785 into private sipp and got basic 20% relief. Now trying to claim the 40% bit. How will I get it paid, when I am retired and stopped paying into sipp?
If you call HMRC & tell them you want to claim higher rate tax relief on your private pension contribution, they should send you a cheque for the difference.
You might need to call couple of times as the first operator i spoke to insisted i write in but when i called the 2nd time they took info over phone & recalculated 22/23 tax calc & sent my cheque for higher rate relief rebate.
What abkut additional rate tax payers? Do we only get to oay £4k per annum?
The minimum reduced annual allowance you can have in the current tax year is £10,000.
Clear as mud