She is a higher rate tax payer and she has been given tax relief on her pension payments of 20% when she should have been given 40%. HMRC have written to her and asked her to fill in a Self Assessment. They have mentioned the Additional information pages but I cannot work out which boxes to fill in. It doesn't appear obvious.
Hi Elaine
I had this issue when reviewing a friends tax return (posted on here about it) as they were entering in the actual net pension payments and not 'grossing them up'
putting the same info into iris gave a bigger refund due to the missed pension relief by not grossing up.
I have not done a self assessment manually for a very long time and hopefully a better tax guru can confirm but if you put the pension payments in gross that net effect would give the correct relief?
Hope that helps
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It's not so much the amounts I have the issue with it's more which boxes in which section. It says to put the figures in the Additional Information pages but I cannot see where about. There are only 4 pages and none seem to suit what I need to put in.
It's not so much the amounts I have the issue with it's more which boxes in which section. It says to put the figures in the Additional Information pages but I cannot see where about. There are only 4 pages and none seem to suit what I need to put in.
Am I not understanding it?
Elaine
Hi Elaine,
Can you give us the leaflet or helpsheet number and the year 2012/13 or other.
I'm not sure about the boxes but the mechanism is that the basic rate of tax band, i.e. 20% band is increased by the amount of pension contribution, therefore any taxable income above the normal band rate will be taxed at 20% to the extent it equals the contribution.
