HMRC has provided clarification on pension tax rules, including when it may adjust a taxpayer's record and key timelines to note. The guidance follows a query from a taxpayer on social media regarding contributions to a self-invested personal pension (SIPP).
The taxpayer asked whether they could amend their self-assessment return after submitting it and whether the amount entered for pension contributions should include the basic rate tax relief claimed by the provider. HMRC responded that online returns are processed within 72 hours, after which amendments can be made. It confirmed that taxpayers should gross up contributions by the 20% basic rate that the pension scheme reclaims.
For private pensions, including SIPPs and certain workplace schemes, tax relief at source is available. Most SIPP providers claim the standard 20% relief and add it directly to the pension pot. Higher and additional rate taxpayers must submit a separate claim to receive extra relief beyond the basic rate.
The taxpayer also asked whether the 72-hour processing period meant the return had been 'checked' or if further checks could occur. HMRC explained that the 72 hours covers initial checks, but returns may be subject to further review later.
When asked about differing contribution amounts between tax years, HMRC confirmed it can adjust records for different amounts each year, provided the return is completed correctly.
