The rate of tax relief I get on my pension contribution drops from 22% to 20% in line with basic rate tax from 06/04/08. This means I'll have to pay an increased net amount in order to keep the same gross contribution. Fair enough, but what I do not agree with, and I see as theft by this Government is them effectively back-dating this reduced tax relief to my March salary.
My salary paid on March 28th had tax at 22% applied to it and the pension deduction was based on 22% tax relief. This deduction, together with the employer's contribution is collected 6th of the month following. I have now been told, that as the direct debit will be taken from the company account by my pension provider in the new tax year, I will only receive 20% tax relief against my payment and will need to make an additional contribution to make up the shortfall.
It may not amount to the national debt, but I'm sure the Government are making several £million this way. Can I contest or reclaim this?
Hi Gem, yes, I do pay monthly in arrears. The pension provider says that it's legislation and their hands are tied. They say regardless of what tax I've paid against the salary that the contribution was taken from or the date of the deduction, the criteria is the day that it hits my pension fund and the rate of relief current on that day. I've asked them to take the DD early but they say there isn't enough time to arrange it now.
Thanks Tax Chap - they were busy and are to call me back.
Hi Sam, got lost in your syntax there a bit. Information I have been given is by Norwich Union who are my pension providers. I am the MD and do the payroll here so I know I'm not getting any BS off my employer ;-) Norwich Union still maintain it's the date that they receive the contributions rather than the date that it is deducted from the employee's salary that determines the rate of tax relief given. If you know of anything that I can refer them to in order to prove them wrong it would be appreciated.
Tax Chap - latest update FSA don't deal with this themselves so they've given me numbers for Pensions advisory service 0845 601 2923 and HMRC occupational pensions 0115 974 1600. As I'm about to finish for the day I'll leave the calls until tomorrow and will update then.
Ok - Pensions Advisory Service say "tough luck" basically. They say that Norwich union are correct, the only chance I have is to fight it through my tax return (for the amount involved I doubt if anyone will bother). They say the Government's argument is that this is all part of life's swings and roundabouts, and had tax gone up and I'd had to pay less, I wouldn't be insisting on paying more. - Still feel like I've had my pocket picked though :-(
 |
· Debt Consolidation
· What is IVA?
· Individual Voluntary Arrangement
· Debt management
· IVA Specialists
· Reduce my debts
· Priority debts
· Non-priority debts
· List your debts
· Credit card debt
· Debt consolidation firm
· Bad debt consolidation remortgage
· Debt consolidation organization
· Debt consolidation lending
· Debt consolidation government loan
· All debt related articles
|