Hello all. Please forgive me if it’s asked before but can’t seem to find any post about this topic. Does anybody know how to get the extra tax relief from hmrc if you are a higher rate tax payer? I know you get the first 20% automatically deposited to your sipp when you do contributions and you must claim the remaining 20% through self assessment tax return. But is this extra tax relief directly deposited to the sipp account same as the first half? And does anybody know how long it takes to receive it? Thank you very much!
HMRC will pay you directly and not into SIPP account…
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The extra 20% - You pay that into your SIPP and you get it back as a refund on your tax bill.
E.g. you pay £10,000.
HMRC tops it up by £2500. There will be £12500 in your SIPP.
You claim back the additional £2500 through your SA tax return. HMRC deducts that from your tax bill and sends it to you.
End result: You payed £7500 and have £12500 in SIPP.
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