Claiming back tax on pension contribution - how?
Discussion
I'm just filling in my self assessment form (on-line) and i was under the impression that i could claim back some tax on my pension contributions? I'm a higher rate tax payer and I match my employeers pension contribution each month.
My contribution is taken directly from my pay each month.
Am i right in thinking that my contribution is only given basic rate tax relief (20%), thus enabling me to claim back the difference due to me being a higher rate tax payer (another 20%)?
If so - can anyone let me know what the relevent section on the tax form is to do this?
Many thanks
My contribution is taken directly from my pay each month.
Am i right in thinking that my contribution is only given basic rate tax relief (20%), thus enabling me to claim back the difference due to me being a higher rate tax payer (another 20%)?
If so - can anyone let me know what the relevent section on the tax form is to do this?
Many thanks
Bandit said:
I'm just filling in my self assessment form (on-line) and i was under the impression that i could claim back some tax on my pension contributions? I'm a higher rate tax payer and I match my employeers pension contribution each month.
My contribution is taken directly from my pay each month.
Am i right in thinking that my contribution is only given basic rate tax relief (20%), thus enabling me to claim back the difference due to me being a higher rate tax payer (another 20%)?
If so - can anyone let me know what the relevent section on the tax form is to do this?
Many thanks
Is your pension contribution taken from your net pay or your gross pay?My contribution is taken directly from my pay each month.
Am i right in thinking that my contribution is only given basic rate tax relief (20%), thus enabling me to claim back the difference due to me being a higher rate tax payer (another 20%)?
If so - can anyone let me know what the relevent section on the tax form is to do this?
Many thanks
Tax payers are entitled to full tax relief on their pension contributions - i.e. at both basic and higher rates of tax. How the tax is relieved does depend on how the pension contributions are actually paid.
I have counted at least 11 different methods in which pensions obtain tax relief.
I have counted at least 11 different methods in which pensions obtain tax relief.
Mx_Stu said:
Bandit said:
I'm just filling in my self assessment form (on-line) and i was under the impression that i could claim back some tax on my pension contributions? I'm a higher rate tax payer and I match my employeers pension contribution each month.
My contribution is taken directly from my pay each month.
Am i right in thinking that my contribution is only given basic rate tax relief (20%), thus enabling me to claim back the difference due to me being a higher rate tax payer (another 20%)?
If so - can anyone let me know what the relevent section on the tax form is to do this?
Many thanks
Is your pension contribution taken from your net pay or your gross pay?My contribution is taken directly from my pay each month.
Am i right in thinking that my contribution is only given basic rate tax relief (20%), thus enabling me to claim back the difference due to me being a higher rate tax payer (another 20%)?
If so - can anyone let me know what the relevent section on the tax form is to do this?
Many thanks
Should this mean that I should be able to claim back tax on all 40% of my contributions?
(Sorry for possibly daft questions - I started a new job this year with this system - previous company paid a 15% non contributory pension so didn't need to worry about this)
If it has come off AFTER the PAYE has already been calculated on the salary, then it is possible that you will only have relieved the 20% tax relief so far (this is given by the government lobbing in the tax into your pension - you don't have to do anything further).
To get the additional relief, you either need to complete a Self Assessment tax return after the end of the tax year or you need to notify the Revenue by an alternative method.
Another permuatation on the tax reelief on pensions is that the Revenue will sometimes sort out the relief by playing with your PAYE tax codingh - so even if the employer is deducting the pension contribution AFTER the tax has been calculated on the salary, if the relief has been factored into the coding notice, then you will be paying the correct tax through the payroll anyway.
Check your current coding notice to see what is happening.
To get the additional relief, you either need to complete a Self Assessment tax return after the end of the tax year or you need to notify the Revenue by an alternative method.
Another permuatation on the tax reelief on pensions is that the Revenue will sometimes sort out the relief by playing with your PAYE tax codingh - so even if the employer is deducting the pension contribution AFTER the tax has been calculated on the salary, if the relief has been factored into the coding notice, then you will be paying the correct tax through the payroll anyway.
Check your current coding notice to see what is happening.
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