Contribution total vs. net - stupid questions

toom

What's the difference between the net contribution and the total?

I pay £256 per month from my bank account (it's a personal pension, so no company contribution). This is listed on the scheme as the net contribution.

But the total contribution is listed on the scheme as £320.

So who pays the extra £64 to my pension provider? Where does this money come from?

dunstonh

So who pays the extra £64 to my pension provider? Where does this money come from?

It is tax relief.

£320 goes into the pension but you pay the net (of basic rate tax) amount of £256. The pension provider applies for basic rate tax relief on your behalf. If you are a higher rate taxpayer then you need to claim back the rest of the tax relief yourself.