Pension tax relief

hilly123

If you are in the 40% tax bracket how do you claim back the additional tax relief on amounts that have been paid into your pension. My understanding is that 20% is paid automatically however the additional relief has to be claimed back by the individual. Is this correct and if so how is it done? via SA?
Thanks in advance

taxing

hilly123 wrote: »

If you are in the 40% tax bracket how do you claim back the additional tax relief on amounts that have been paid into your pension. My understanding is that 20% is paid automatically however the additional relief has to be claimed back by the individual. Is this correct and if so how is it done? via SA?
Thanks in advance

You need to phone tax office and explain position. In the code they will give you half the Gross premium you pay in the whole year as extra tax allowances - this works for PAYE as you will get tax relief at 40% on half the gross which is, of course, equivalent to an extra 20% on the total gross payment (as they say in CIS - do the 'math'!!).

This link explains how to get tax relief -
http://www.hmrc.gov.uk/incometax/how-to-get.htm#2

Your payroll dept at work should be able to give you the tax office phone number you need or you can use this:
http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp?type=1

You can also ask for a claim form for past tax years if you have missed claiming in earlier tax years.

Good luck.

jem16

hilly123 wrote: »

If you are in the 40% tax bracket how do you claim back the additional tax relief on amounts that have been paid into your pension.

How are your pension payments made? If from gross salary before tax you already have the full 40% tax relief. If from net salary then do as taxing says.