Pension and higher rate tax relief

dano17439

Hi

I have just been promoted at work and now my salary falls into the 40% tax bracket.

My employer contributes 7.5% of my salary in to the group pension scheme and i contribute 2.5%. The deduction from my salary is made NET of tax as the pension supplier claims the basic 20% tax relief for me, which is shown on my annual statement.

If i now complete a tax return will i be able to claim 40% tax relief on my contributions? If so how will this be paid - direct to me in a refund, direct to my pension company to be added into my pot or will my tax code just be adjusted to compensate the relief?

Thanks in advance

CLAPTON

so you salary will be over 42,475 per annum this year (including any benefits in kind)

for tax purposes you pay 40% tax on the amount on income over this amount
income means gross salary plus BIK plus grossed up interest (excluding ISA) and grossed up dividends (excluding ISA)
less grossed up pension contributions
if so then you will need to make a claim to HMRC for the extra tax relief; they may send you a cheque or adjust your tax code


how much are you expecting to be over the threshold ?
and do you have saving interest or dividends

dano17439

I will probably be around £4,000 over the threshold, bonus dependant. I have no other taxable income as the only savings i have are in ISA's