HR Tax Relief via code

AlanP_2

I'm getting more confused now.

All contributions are eligible for 40% relief and the employment the code is applicable to is a standard PAYE arrangement.

So on that basis and working on a contribution of £4800 with the platform reclaiming £1200 for the BR relief what should the code adjustment amount be?

Dazed_and_confused

All contributions are eligible for 40% relief and the employment the code is applicable to is a standard PAYE arrangement.

I have no idea what you mean by "standard PAYE arrangement".

But the allowance given via the tax code depends on the tax rate applicable to that income. You could be higher rate on your total income but only pay basic rate tax at your job/pension where the tax code is applied.

But it is probably more common to be higher rate overall and liable to higher rate tax on the job/pension where the tax code is applied.

If full higher rate tax relief was definitely due on the pension contribution then the figures are,

Pension contribution = £6,000
Total tax relief due = £2,400
Tax relief allowed at source = £1,200
Additional tax relief due = £1,200
Tax code allowance would be £3,000
Additional allowance of £3,000 reduces the PAYE tax payable by £1,200 (£3,000 x 40%).