Pension contributions & Children benefit/Allowance

spud312r

Hi

I am a higher tax payer but under 60k and will lose some of the child benefit/allowance.
I have just started to pay back into my personal pension scheme.
This is direct debited from my bank account after salary is paid in.
Currently i dont receive any contributions from my company (although this will have to change this year as they are classified as a medium sized comapny now) so the payments are to a older personal group pension scheme from a previous employer, and i receive the full tax relief as my taxcode now includes this.

I under stand that by paying into a personal pension you can reduce your taxable income, which in my case will bring me under the 50k limit.

Can you tell me if this is correct ?
Do i have to change my pension contributions to a Salary Sacrifice payment ?
If so how do i go about this ?

Regards

jem16

spud312r wrote: »

Can you tell me if this is correct ?

Yes it is correct.

Do i have to change my pension contributions to a Salary Sacrifice payment ?

No you don't.

If so how do i go about this ?

Regards

Simply arrange to pay more into your personal pension. You will also have to join Self Assessment and complete a tax return each year.

spud312r

jem16 wrote: »

Yes it is correct.



No you don't.



Simply arrange to pay more into your personal pension. You will also have to join Self Assessment and complete a tax return each year.

Yes i currently do self assesment and will increase pension contributions
After speaking to HMRC and giving them pension details, it was odd that they have changed my tax code to give me the full 40% tax relief on the contributions in my tax code .. normally i would have to claim some of that back on self assesment.

Thanks for the help

jem16

spud312r wrote: »

After speaking to HMRC and giving them pension details, it was odd that they have changed my tax code to give me the full 40% tax relief on the contributions in my tax code .. normally i would have to claim some of that back on self assesment.

Thanks for the help

It doesn't really matter whether it's done through SA or via a change in your tax code. In the end it works out the same.

However 20% should be added on via your pension provider with the other 20% coming from HMRC. Is that not what's happening?