Tax Rebates & Refunds

High rate taxpayers urged to claim tax rebate on pension contributions

March 6, 2013
Posted in Tax Rebates — Written by Geoffrey

The accountancy firm Smith & Williamson has urged higher rate taxpayers, those who pay income tax at 40 per cent or 50 per cent, to claim tax rebates on personal pension contributions as soon as possible.

The company has said that if higher-rate taxpayers who have personal pension schemes want to claim tax back for contributions made in the 2008/09 tax year, they only have until April 5th this year to get their claim in.

Richard Mannion, who is the national tax director for Smith & Williamson said:

“HM Revenue & Customs automatically gives tax relief on pension contributions at the basic rate of 20%, but if you pay income tax at 40% or 50%, it is up to you to claim this difference.

“People frequently overlook this and pay more tax than they need as a result,”

Mr Mannion also used an example to illustrate how much of a tax refund eligible taxpayers could actually get. He said that if a 40 per cent taxpayer who has contributed a total of £8,000 to a personal pension over the last three tax years, but has not claimed tax relief, could potentially be due a tax rebate of £6,000.

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