Tax back on pension payments

Atha_Cliath

I pay into a private pension fund and the amount is deducted automatically from my salary each month. Some of my salary is in the higher tax bracket. Somebody has told me that I can claim tax back on the differance between the lower and higher brackets.

Can somebody tell me how I can claim this tax back and what I need to do?

malcindebt

Atha_Cliath wrote: »

I pay into a private pension fund and the amount is deducted automatically from my salary each month. Some of my salary is in the higher tax bracket. Somebody has told me that I can claim tax back on the differance between the lower and higher brackets.

Can somebody tell me how I can claim this tax back and what I need to do?

When the pension contribution is deducted from your pay, is it taken before or after tax?

If it is taken before tax then here is nothing to do as you will have already received the relief due, as the pension contribution will not have been taxed.

If it is taken after tax, then get your annual pension statement from the pension company, and your p60 from your employer, and send to the tax office asking them to assess the details and issue any repayments due.

Bean_Counter

You will entitled to some higher rate relief come what may.

As malcindebt said, get the statement from the pension provider and write to your local tax office.

I do this and it goes very smoothly.

Hoddie_2

You will entitled to some higher rate relief come what may.

Not if the contributions come from untaxed income.

Bean_Counter

Hoddie wrote: »

Not if the contributions come from untaxed income.

True, but the original poster said that it was deducted from her salary and part of that was liable for higher rate tax, hence seemed a reasonable assumtpiton that it was tax income.

Hoddie_2

Most contributions deducted from employment income are taken from gross, not net. That said, it's certainly worth checking as some do contribute from net income.

Debt_Free_Chick

It depends on the type of pension scheme you pay into.

If it's an occupational pension scheme, then the contributions are deducted before tax is calculated. In effect, the contributions reduce the pay on which tax is based, so you get full tax relief at source.

If it's a stakeholder pension, then your contributions are deducted from net pay. However, they are treated as contributions which are net of basic rate tax and you then have to claim the higher rate relief by putting them on your tax return (or, if you are not required to do a return, by contacting your tax office).