The Money Thread: Mortgages, Savings, Debt, Investments - all that stuff

[redsimon]

Anyone got advice on claiming back tax relief on pension, 40% tax payer and getting 22% relief at moment, last did it in 2007 via a financial advisor at work for free and got a cheque. From the taxman for a few grand, however this time he wants to charge me a few hundred quid
Thanks

You pay Income Tax on your earnings before any pension contribution, but the pension provider claims tax back from the government at the basic rate of 20 per cent. In practice, this means that for every £80 you pay into your pension, you end up with £100 in your pension pot. If you pay tax at higher rate, you can claim the difference through your tax return or by telephoning or writing to HMRC. If you're an additional rate taxpayer you'll have to claim the difference through your tax return.

Taken from HMRC website.

No need to pay an advisor just contact HMRC

[Doobs]

+1 to not using an advisor.  If you don't want to complete a self assessment form you can just write a letter.

http://www.hl.co.uk/__data/assets/pdf_file/0008/5822684/Guide-to-Claiming-Higher-Rate-Tax-Relief.pdf

[EvilPie]

Self assessment is an absolute doddle just in case the thought of it worries you.

Pretty thin by the way

[WPIL]

Thanks, although does it just mean my tax code gets adjusted, fancy a nice big cheque to splash out on a holiday?

[EvilPie]

I believe you get the  choice but it depends how much it is.

Do you know roughly how much to expect?

Pretty easy to work out if you know how much your pension contributions were and how much you paid at 40%

The max you'll get is about 20% of your total contribution but only if your higher rate earnings cover it.

Basically whichever is the lower of your contribution or higher rate salary you'll get approx 20% of that back.

If it's a tidy amount they'll give you a cheque. If it's a few hundred they'll tax code it but either way you get the choice.

[BulldozerD]

I got a cheque last time. When you write don't forget to include any gift aid payments you have made and other deductible stuff like professional subscriptions etc.

Make sure you are clear in your letter whether the amounts you have stated are gross or net. I'd check any calculation by hmrc as they got my last claim wrong, twice.

[WPIL]

Thanks all, finally got the letter done and will be sending, hopefully will get a few quid (I also recently claimed back on laundry costs as I normally wear a company polo shirt to work, bit random I know and not heard anything back yet)

[DaveShoelace]

http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity

Npower are doing a price fix until 2017, this deal is expected to only last a few weeks and gas/leccy prices are expected to rsie 50% in the next 2-3 years, so its worth switching now imo.

I'm with Scottish Power and just rang em up, they are going to match their Dec 2016 price fix for me. Its only three months difference so I decided to stick with them to avoid the hassel. The rate is about a tenner more a month right now but I'm sure it will pay for itself as my current fix only lasted till next Jan.

[Tractor]

Anyone one had any experience of ground source heat pumps / air pumps / biomass boilers / solar etc. ? I am just about to start on a biggish rebuild and extension and due to huge fuel bills on my last property am looking down the Eco route and to capitalise on the government rebates starting next year. I am leaning towards biomass boiler and solar panels but any advice, personal experience is welcome as this is a new area for me. At the moment the property only has LPG.

[Junior Senior]

My mortgage rate is fixed as rates were rocketing and things uncertain when i took it out. Its about 4%. I am abut to get a redundancy pay out. Surely i am best lumping off an overpayment with it than putting in savings or pensions?

[DaveShoelace]

My mortgage rate is fixed as rates were rocketing and things uncertain when i took it out. Its about 4%. I am abut to get a redundancy pay out. Surely i am best lumping off an overpayment with it than putting in savings or pensions?

I find myself in a similar quandry (not the redunancy but where to invest my funds) and I think the same thing. If your mortgage provider is like mine, then if something goes tits up in the current 5 year mortgage window for you, you can use the overpayment to cover your regular payments as a payment holiday instead of as an overpayment, which is an extra safety net.

[Woodsey]

My mortgage rate is fixed as rates were rocketing and things uncertain when i took it out. Its about 4%. I am abut to get a redundancy pay out. Surely i am best lumping off an overpayment with it than putting in savings or pensions?

Saving rates are piss poor currently so yes probably.

[redsimon]

My mortgage rate is fixed as rates were rocketing and things uncertain when i took it out. Its about 4%. I am abut to get a redundancy pay out. Surely i am best lumping off an overpayment with it than putting in savings or pensions?

You won't get 4% on any savings bond unless you stick it there for donkeys years on a fixed rate. Better to reduce debt tbh

[Junior Senior]

Cheers. Just wanted a second or third opinion. We can get payment holidays yes and as savings rates are poor and the mortgage is pretty big i will lump off the mortgage and maybe some premium bonds for the sweat.