Higher Rate Pension Tax Relief Help

campbell19925

I earn over the £45,000 higher tax rate threshold and I'm just wondering how I would claim tax relief on my pension contributions?
Does this count for my current workplace scheme?

mgdavid

If your employer utilises Salary Sacrifice then there's no tax to reclaim as it's done by reducing your actual salary and all pension contributions become Employers' contributions.
Otherwise you can reclaim via self-assessment form, or by simply phoning HMRC and giving them all the details.

zagfles

mgdavid wrote: »

If your employer utilises Salary Sacrifice then there's no tax to reclaim as it's done by reducing your actual salary and all pension contributions become Employers' contributions.
Otherwise you can reclaim via self-assessment form, or by simply phoning HMRC and giving them all the details.

There is also the confusingly named "net pay" method where pension contributions are taken before tax, but after NI. This is the traditional method of paying pension conts, loads of companies use it and I think most public sector employers use it. Tax relief is already given in payslip so no further claim is necessary whatever level of earnings.

It's only RAS schemes, like GPPs (group personal pensions) where payments are taken after tax, where the employee can claim higher rate relief. Check pension statements to see if tax relief is being claimed - if it is then it's a RAS scheme and higher rate taxpayers can claim additional relief.

xylophone

http://www.retirementplanner-sw.com/digital_assets/15896/Relief_at_source_and_net_pay_-_avoiding_confusion.pdf