Pensions/tax relief

[NickDRFC]

It’s coming up to the end of the tax year so worth checking - if you/partners/family/friends are a higher/additional rate taxpayer paying into a relief at source pension scheme (ie not salary sacrifice) you or they may be entitled to a tax rebate. It’s estimated that there’s almost £1billion that the UK public are missing out on because of a lack of awareness, but it’s pretty easy to do and there’s no need to fill out a self assessment - all it takes is a call to HMRC (ok, might be a long call but it’s still pretty straightforward). I believe there’s also a way to do it online. Claims can be done for the last 4 years so anything done this week would be able to be backdated to the 2020/21 tax year.

https://getpenfold.com/news/claim-higher-rate-pension-tax-relief

[big fat yorkshire pudding]

Very good shout. Worth calling out aswell it's worth looking at paying in to your workplace pension via salary sacrifice as that actually makes you better off as you save the ni, if you can, most places allow that.

[BobG]

Or pay into an AVC. As a higher rate tax payer 20% gets added to your investment and you automatically get a cheque from the Inland Revenue for a refund of  your remaining 20% tax paid. So for every £100 you invest you get £120 invested and a cheque back for £20. Net effect is £80 paid and £120 invested. Who else gets an immediate 50% return????

It's a Tory bribe to encourage their natural supporters to vote Conservative. But that's  no reason for the working man not to take advantage.

BobG

[drfchound]

Bob, your post shows how much things have changed.
Only a few years ago a higher rate tax payer could never be described  as a working man.

[NickDRFC]

Or pay into an AVC. As a higher rate tax payer 20% gets added to your investment and you automatically get a cheque from the Inland Revenue for a refund of  your remaining 20% tax paid. So for every £100 you invest you get £120 invested and a cheque back for £20. Net effect is £80 paid and £120 invested. Who else gets an immediate 50% return????

It's a Tory bribe to encourage their natural supporters to vote Conservative. But that's  no reason for the working man not to take advantage.

BobG

I wouldn’t say “or”, that’s something to do as well if you have the means to rather than as an alternative. Anyone who is employed is paying at least 4% into their workplace pension, and higher rate taxpayers are entitled to additional relief on that if it’s a not salary sacrifice.

An AVC (or SIPP if you want to diversify and have more control of your investment) is a very useful, tax efficient way of topping up but an astonishing amount of the time people aren’t claiming money that they’re already entitled to through workplace pension contributions.

[BobG]

Bob, your post shows how much things have changed.
Only a few years ago a higher rate tax payer could never be described  as a working man.

Hi Hound

Aye. You are right. And it all stems from the long standing and continuing political inability to charge a sensible rate of income tax and decades of financial gerrymandering designed to ensure the continuing loyalty of one specific section of society to one particular political party.

Who, for the love of God, thinks having to pay to park your car when you take someone, or yourself, to hospital in a panic is a sensible way to organise things? Yet that, and plenty of other ridiculous expedients are what we have been forced to adopt vecause the taxation system has been bas**rdised.

[Bentley Bullet]

Bob, your post shows how much things have changed.
Only a few years ago a higher rate tax payer could never be described  as a working man.

Hi Hound

Aye. You are right. And it all stems from the long standing and continuing political inability to charge a sensible rate of income tax and decades of financial gerrymandering designed to ensure the continuing loyalty of one specific section of society to one particular political party.

Who, for the love of God, thinks having to pay to park your car when you take someone, or yourself, to hospital in a panic is a sensible way to organise things? Yet that, and plenty of other ridiculous expedients are what we have been forced to adopt vecause the taxation system has been bas**rdised.

I agree, it's ridiculous, but having free parking at hospitals would apparently be discriminating against people without private transport who have to pay bus fares.

[BobG]

Lol! Truly, I hope that's a joke. But you can imagine some clown actually meaning it can't  you...?

What a strange, strange world we have made


BobG

[danumdon]

Always amazed me the amount of schemes that a governing party manage to put into place to monetize, at will.

What doesn't amaze me is that every future incoming government never manage to cease the practice!

[Bentley Bullet]

Lol! Truly, I hope that's a joke. But you can imagine some clown actually meaning it can't  you...?

What a strange, strange world we have made


BobG

It's not a joke!

https://tinyurl.com/45dpxywa

[IDM]

Bob, your post shows how much things have changed.
Only a few years ago a higher rate tax payer could never be described  as a working man.

Hi Hound

Aye. You are right. And it all stems from the long standing and continuing political inability to charge a sensible rate of income tax and decades of financial gerrymandering designed to ensure the continuing loyalty of one specific section of society to one particular political party.

Who, for the love of God, thinks having to pay to park your car when you take someone, or yourself, to hospital in a panic is a sensible way to organise things? Yet that, and plenty of other ridiculous expedients are what we have been forced to adopt vecause the taxation system has been bas**rdised.

I agree, it's ridiculous, but having free parking at hospitals would apparently be discriminating against people without private transport who have to pay bus fares.

Because cars, insurance, road tax, petrol are all free aren’t they?

By their logic it’s equally or more discriminating against drivers then?