http://www.consumeractiongroup.co.uk/forum/images/smilies/smile.gifThis seems rather dull on the face of it, but anyone on the higher rate of income tax who’s not doing this could be missing out on lots of cash.
A beginner’s guide to claiming back the money:
When you pay into a Personal or Stakeholder pension you get tax relief at the normal rate of income tax - 22% (i.e. for every £78 pension contribution on your pay slip, £100 goes into your pension – so the tax bods give you back 22% of the full amount).* If earn more than £33,301 you pay the higher rate of income tax (40%), but you still only automatically get the 22% tax relief.* However, you are entitled to claim the additional 18% on your pension payments.
All you need to do is send your P60 (that you’ll get at the end of this month) and a covering letter detailing your gross pension contributions for the year (i.e. what’s going into your pension, rather than what’s coming off your pay slip) to the following address. Then they’ll calculate what you are owed.
HM Revenue and Customs
City Centre House
30 Union Street