Pension Contributions and Income Tax

[Steve vRS]

I have just changed jobs and started paying into a contributory pension scheme. I am a 40% tax payer and will be paying in a percentage of my salary into the pension scheme. My employer pays in a fixed percentage of my salary also.

Are my contributions taken off my salary before tax? AS an example, if my monthly salary is £2500 and I pay £500 into the pension scheme, am I then liable for income tax on £2000 or do I only get tax relief on 20% - the lower rate of tax?

What about NI contributions?

Thanks in advance!

Steve

[Steve vRS]

Thanks. So regardless of the rate of tax, company pension contributions are taken off before tax?

Steve

[Steve vRS]

As it turns out, I have been given 20% tax relief at source and have been told by HR that I can reclaim the other 20% when I do my tax return.

As my income affairs are straight forward (one job, no investments or buy to lets etc.) the only reason I do a tax return is for the child benefit refund so is it straight forward to do this pension claim?

Thanks in advance!

Steve