Questions for higher rate tax payers on tax relief

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1

extra tax relief hasn’t been a thing i needed to look at until recently (last year basically and some EIS stuff that ive ignored :grimacing:)

I expect its relatively simple but the information out there seems needlessly confusing.

Anyone who’s delt with claiming extra tax relief on things like SIPP contributions, etc. got any tips?

Couple of things I’m looking at.

It seems i have until the end of the month 31st Jan) to submit an online self assessment to claim back tax from 2020-2021 ? (i have no additional income, its all PAYE, im just trying to figure out how to claim back tax)

For extra SIPP contributions this sounds like its straight forward? start an online assessment and add in my total contributions? (for reference i went over the higher rate tax jan 2020, so all contributions since then have been as a higher rate payer)

I also saw that you can claim back tax from any gift aid donations? But it looks like this would require tracking what gift aid donations ive made. Has anyone ever bothered to do this?

And on EIS, while they’re small amounts of shares i have, ive not really done anything here. But it looks like ive not left them to late (there all 2020 or 2021), i looks like i can add these to the self assessment as well. has anyone ever done this? can you add multiple at the same time?

Im worried ill put something in wrong and the evil HMRC will come after me :rofl:

2

Have you registered for Self Assessment yet? If not I would phone HMRC.

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4

I’ve not but I’ve got e gov.UK account, I figured it may be less hassle

Makes sense, I saw I can send them in though I’d need a printer unless I can email them

It looks like I’m not to late then to sort it all out, it’s not exactly huge sums but, it’s enough

5

Also it looks like I can just submit my numbers (though I just read that for SIPP contributions I should include the initial tax relief?), and keep records.

I guess for a freetrade SIPP the best option is to get their csv dump from CS…? I’m wondering if that’s sufficient if they ask for evidence at some point

6

The SIPP value you quote should be the total you invested including basic tax relief in the 2020/21 tax year ( so if you invested £2k use £2.5k ). I don’t have a FT SIPP but I would hope this value is shown somewhere.

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7

Yeah that’s what I read. One thing im unsure of is if tax relief should be included even if the relief was received in the next tax year?

E.g. if I added 2k in March but got the tax relief in May, is the relief included in this years submission for 20/21 or next years for 21/22?

8

2020/21

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9

Thanks for the input

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10

This can be a bit unclear - Some apps show the total contribution including the initial 20% tax relief in different ways.

In HL it reports as all being in the year of the initial contribution even if the tax relief actually gets given the following year. For FT and Moneybox they only show the tax relief as being part of the overall pot when it hits the account itself and not at the time of initial contribution. I would follow the approach your app takes to mirror their reporting.

11

Which is great because on Freetrade once it hits a new tax year, the old data is gone (except the fantastic activity feed…). Not that it was much data to begin with. To top it off they screwed up their annual benefit statement so removed it and will issue a new one in the ‘near future’…

12

That’s awful. We need to be able to see previous years high level data too.

In HL you can see each year separately at a high level within the account.

13

It’s not ideal. The data and reporting issue has becoming a bigger problem over time in general that I might consider moving everything this year except the GIA

14

I’m the same.

I actually really regret moving my £ to FT.

As well as the reporting the lack of any ability to invest regularly via a recurring payment of some kind such as direct debit is totally ruining the use case for me - I thought they would be adding this.

If you need to manually add each investment it makes the contribute and ignore it way of investing a lot harder. I prefer VG and HL where I can set up monthly DD’s and then ignore it.

Surely FT could set up recurring monthly payments with Open Banking if DD is too difficult? I believe many large investors will not move to FT until regular investing is added (this is not pies).

15

Do you mean move away from FT or to FT? I ask because you don’t need the position movement(s) inside the SIPP or ISA for tax purposes.

16

Considering moving away from Freetrade going forward

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17

I don’t necessarily mind some of the other parts but basic report generation is really grating at this point. I do get it, I expect they have trouble hiring devs like many people are, especially when they seem to be only hiring in London and aren’t accepting remote working (which seems to be a death spiral for some companies in 2022 when they refuse to change with the times).

But it’s grating at this point

Anyway. On topic :smile: I may not be able to submit a self assessment as I might be to late to register. So I might have to phone them up regarding the SIPP contributions and mail in the EIS forms (total pain)

Does anyone know if you can email EIS forms? I couldn’t find anything on it. I’d have to buy a printer otherwise lol

18

I’ve always submitted EIS via my tax return. So it may be possible to do via email also - worth a try as the info you provide is quite simple.

19

It used to be possible for us to set up a standing order from our bank account to our Freetrade account

20

Check out your local library. Mine has a printing facility.

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21

It was possible but now it isn’t possible ?