declaring pension contributions to HMRC
declaring pension contributions to HMRC
Author
Discussion

Blown2CV

Original Poster:

31,660 posts

233 months

Wednesday 20th April 2016
quotequote all
I pay into an employer pension scheme, and I've always declared my statements to HMRC as part of my annual tax affairs. My current employer however lumps all their contribution on my behalf AND my contribution into a single figure on the statement. If I send this to the HMRC, will they think I owe them less or more tax than I really do? Does it matter? I don't fully understand it.

bogie

17,086 posts

302 months

Thursday 21st April 2016
quotequote all
you need your contribution for your tax return, particularly if a higher rate tax payer. Ask employer for breakdown at end of the year, usually shown on P60

schmunk

4,399 posts

155 months

Thursday 21st April 2016
quotequote all
For most employer pension schemes, you receive full tax relief at source through payroll and there is no need to report anything further in a tax return.

It sounds like you perhaps have a salary sacrifice scheme, meaning that you effectively agree to give up some salary in exchange for your employer making an equivalent payment to your pension, plus any matching employer contributions - in effect you are not making any pension contributions, hence the statement only showing a larger employer contribution.

Employer contributions to pension are not taxable, to the extent that they're within the annual allowance, which for the last few years has been £40,000 per "pension input period" (plus brought-forward unused reliefs if needed, and there was some jiggery-pokery in 2015/16 which meant you could potentially pay more in but lets not get into that...).

Tl;dr - In general, if the total of your personal and employer pension contributions is less than £40,000, there's nothing for you to report.

Edited by schmunk on Thursday 21st April 09:06

Blown2CV

Original Poster:

31,660 posts

233 months

Thursday 21st April 2016
quotequote all
aha ok interesting, yes the deduction for my contribution appears on my payslip on the left-hand side i.e. the gross side! I think it is salary sacrifice, so that does totally make sense to me now. Sounding like no need to submit anything! Thanks both.

oyster

13,781 posts

278 months

Friday 22nd April 2016
quotequote all
schmunk said:
.....there was some jiggery-pokery in 2015/16 which meant you could potentially pay more in but lets not get into that...). [/footnote]
Could you go into it??

Jockman

18,414 posts

190 months

Friday 22nd April 2016
quotequote all
oyster said:
schmunk said:
.....there was some jiggery-pokery in 2015/16 which meant you could potentially pay more in but lets not get into that...). [/footnote]
Could you go into it??
http://www.professionaladviser.com/professional-adviser/opinion/2417293/the-pension-tax-anomaly-that-gives-with-one-hand-and-takes-with-the-other

Too late now.