We have a new client who has had pensions incorrectly processed through the payroll for more than four years. These are individual schemes that reclaim the tax on employee contributions and which are topped up with employer contributions. It is difficult to talk to the pension scheme, because of data protection on each individual scheme. I have seen an employee statement confirming the scheme is claiming tax back.
The employee's contributions have been matched with a salary sacrifice, whereas the pension scheme has been set up with tax relief reclaimed by the scheme, so effectively the tax relief has been claimed twice.
Over the years several employees have left and, of course, previous tax years are closed. I have stopped the salary sacrifice on appointment, so the pension deductions match the pension scheme treatment.
My problem though is how to go about rectifying previous years. Has anyone had any experience in negotiating a settlement with HMRC or is there any other method of getting this resolved?