I have always been Self-Employed, and have just discovered that my Accountant has not been claiming Tax Relief for my RAP ever since the rules changed in 2001 !
Even though they were already acting for me (and I had sent them details of my "Personal Retirement Plan"), when the rules changed they just presumed it was a Personal Pension, so stopped claiming relief against my earnings! They say I should have noticed when signing off my return - but THEY are the experts! How am I supposed to understand these kinds of technicalities? At the very least, surely THEY should have made sure WHICH kind it was when the new rules came in? I therefore believe they have been negligent. (They always put my contributions down on my Self-Assessment Tax Returns, along with the policy, but STOPPED deducting the figure from my tax due from 2001)
I know they can re-claim the tax paid to HMRC for RECENT years, but I feel they should re-imburse me for the Tax I should have saved prior to this.
Opinions on that would be welcome . . . but MAINLY I am trying to find out about HMRC amounts and limits going back to 2000. . . . despite searching I can find no proper information relating to RAPs.
Firstly - what are the LIMITS in percentage of net income that could be contributed to an RAP? I understand now it is 100%, but when did that change? Is it true that prior to 2006 it was 25% if aged 46 - 50 and 30% if 51 - 55 ? And if so, was that the same back in 2000? And what should have happened if I contributed MORE than the allowed amount? (by the way, the recent £50,000 limit is irrelevant, we are talking about much lower figures - typically £2 - £3,000 a year !)
Somewhere I have read that "RAPs are unaffected by the restrictions imposed on Personal Pensions introduced in April 2006" - but what Restrictions do and don't apply?!!