P60 SIPP Question

berbatov10

Can someone advise me on the following. On my pay advice to 1 March 2015 my National Insurance earnings are £51,100 on my year end P60 it shows my taxable pay as £45,100. Which figure do i use for claiming 40% on my SIPP contribution. why are the 2 figures different?

Linton

Gross pension payments?

jamesd

Maybe no claim required. It appears that the pension payments may have been deducted from gross pay and might have the full 40% relief already applied. This is I think what the situation would be if your pension contributions for the year are £6,000, the difference between the NI and P60 taxable pay. NI on it all, income tax only on the part after paying the pension contributions without tax deduction.

zagfles

jamesd wrote: »

Maybe no claim required. It appears that the pension payments may have been deducted from gross pay and might have the full 40% relief already applied. This is I think what the situation would be if your pension contributions for the year are £6,000, the difference between the NI and P60 taxable pay. NI on it all, income tax only on the part after paying the pension contributions without tax deduction.

Employers don't usually contribute directly to a SIPP from pay, I would imagine the OP is in an occupational scheme (the £6k deduction) and has a SIPP as well.

In which case OP use the taxable pay.

berbatov10

Hi I have a pension which is final salary, the SIPP is money invested by myself outside of my works pension

jem16

berbatov10 wrote: »

Hi I have a pension which is final salary, the SIPP is money invested by myself outside of my works pension

You use the P60 figures for the tax return employment section and the full gross payment to the SIPP in the pensions section. You don't mention the works pension at all on the tax return.

berbatov10

Thanks Jem. Are you able to tell me why the figures are different?

zagfles

berbatov10 wrote: »

Thanks Jem. Are you able to tell me why the figures are different?

Probably your contributions to final salary scheme.

jem16

berbatov10 wrote: »

Thanks Jem. Are you able to tell me why the figures are different?

The £6k to your final salary pension scheme is taken from gross pay thus reducing your taxable pay by that £6k.

jamesd

Since the work pension is defined benefit it's as zagfles andjem16 wrote: use the gross amount that arrived in the SIPP to claim the tax relief. that gross will include basic rate tax relief and HMRC will increase your basic rate tax band by that amount to give you the higher rate income.