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Tax relief on pensions contributions

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Comments

  • jem16
    jem16 Posts: 19,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    xylophone wrote: »
    I imagine that the OP is contributing to TPS and to a TPS AVC scheme.

    May well be Addional pension rather than an AVC but the tax relief is handled at source anyway so nothing extra to claim.
  • craig1912
    craig1912 Posts: 52 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Straightforward deduction from salary happens after tax has been deducted, and the income tax part of it reclaimed when deposited into a pension fund, no?

    No wrong- see answers below but pension contribution comes off gross pay, therefore before tax, therefore in effect giving tax relief so need to reclaim it. NI is still payable on gross pay.
    My pension contribution is by salary sacrifice. I don't make a contribution but agree with my employer to reduce my salary and he pays the contribution and adds his own to that too.
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