I stopped contracting in 2010, closed the Ltd Co & took up perm PAYE employment completing all SA's & paying all taxes due & only claiming the usual pension contributions, mileage & gift aid etc.
For the last 4 years I have transferred £10k pa from ISA to SIPP & gained the 25% in SIPP tax rebates & then claimed the 20% SA rebate vs my relevant PAYE income - that’s generated a fund to pay my DR settlement & a 3rd pension for later. I am very lucky to be able to do that.
But HMRC Stopped refunding me PAYE SA tax refunds 4 years ago when the settlement thing started & retained the funds due to me, & yes i did formally ask them for it back. But Nope.
Q 1 - What legislation allows them to do that?
Q 2 - What +interest will they apply & is it compounded?
Had they refunded me the ~£2k PAYE rebate each tax year, I would have put that in the SIPP too! that generates a further £500pa in SIPP rebate pa & a further PAYE SA £400 pa rebate the tax year after. All vs relevant income.
The value to me of that vs HMRC + interest is much greater & then because of age, I could have taken the 25% lump sum to pay HMRC & had a SIPP pension on ice / drawdown too & a sum to go back in the ISA.
£10k over 4-5 tax years & recycling the PAYE rebate would have generated a fund of ~£60k allowing me to draw down c£15k which is more than my settlement. All that is not including fund growth over the last 4 years that has hugely outweighed any bank or Gov interest rates! ~8% vs 0.5%! (C19 effects on market inc)
With HMRC retaining those tax rebates I have lost about £3200 in legitimate tax rebates & not accounting for any fund growth.
Q 3 - Does anyone think I can claim the value of those rebates from HMRC?
All they have said they will do is offset the tax withheld vs settlement & then send me the bill for any balance.
(Nb this post could be in either HMRC scheme enquiries or accounting forums?)
Thanks all & good luck with this latest phase of the DR mess.
For the last 4 years I have transferred £10k pa from ISA to SIPP & gained the 25% in SIPP tax rebates & then claimed the 20% SA rebate vs my relevant PAYE income - that’s generated a fund to pay my DR settlement & a 3rd pension for later. I am very lucky to be able to do that.
But HMRC Stopped refunding me PAYE SA tax refunds 4 years ago when the settlement thing started & retained the funds due to me, & yes i did formally ask them for it back. But Nope.
Q 1 - What legislation allows them to do that?
Q 2 - What +interest will they apply & is it compounded?
Had they refunded me the ~£2k PAYE rebate each tax year, I would have put that in the SIPP too! that generates a further £500pa in SIPP rebate pa & a further PAYE SA £400 pa rebate the tax year after. All vs relevant income.
The value to me of that vs HMRC + interest is much greater & then because of age, I could have taken the 25% lump sum to pay HMRC & had a SIPP pension on ice / drawdown too & a sum to go back in the ISA.
£10k over 4-5 tax years & recycling the PAYE rebate would have generated a fund of ~£60k allowing me to draw down c£15k which is more than my settlement. All that is not including fund growth over the last 4 years that has hugely outweighed any bank or Gov interest rates! ~8% vs 0.5%! (C19 effects on market inc)
With HMRC retaining those tax rebates I have lost about £3200 in legitimate tax rebates & not accounting for any fund growth.
Q 3 - Does anyone think I can claim the value of those rebates from HMRC?
All they have said they will do is offset the tax withheld vs settlement & then send me the bill for any balance.
(Nb this post could be in either HMRC scheme enquiries or accounting forums?)
Thanks all & good luck with this latest phase of the DR mess.
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