Higher Rate Pension Relief, Self Assessment question

gary44

Hi
I've recently applied for self assessment in order to repay part of Child Benefit. I've been entitled to additional pension tax relief as I pay 40% tax on part of my income, and this has resulted in my tax code being adjusted

I can't find where I add this detail into the self assessment form? Can someone help me?

Thank you

Dazed_and_confused

Do you pay into a relief at source pension or is it net pay (i.e. salary £60k, 10% pension contribution so P60 shows £54k taxable income)?

Tom99

If it applies then Page 4:

Tax reliefs
Paying into registered pension schemes and overseas pension schemes

gary44

Dazed_and_confused wrote: »

Do you pay into a relief at source pension or is it net pay (i.e. salary £60k, 10% pension contribution so P60 shows £54k taxable income)?

Contribution into pension via employee scheme. Paid before tax (comes out of gross salary) Tax relief at basic rate. Currently pay higher rate (40%) tax on a proportion of income

Dazed_and_confused

There is nothing for you to claim, you are already receiving higher rate relief.

For example (using 19:20 rates)

Income 1 £40,000 less say £4,000 pension = £36,000 taxable income (no higher rate tax payable, £12,500 covered by PA and £23,500 taxed at basic rate). Your P60 would show the taxable pay of £36,000, not the salary of £40,000

Income 2 £30,000 with approx £14,000 liable at basic rate and £16,000 liable at higher rate

If you hadn't made the pension contribution an extra £4,000 of income 2 would be taxed at higher rate. So you have received higher rate relief overall. Without involving HMRC at all.

Dazed_and_confused

I've been entitled to additional pension tax relief as I pay 40% tax on part of my income, and this has resulted in my tax code being adjusted

You may want to get this looked at as you will just be building up a tax debt, which will come to light when you complete your Self Assessment return for the tax year the tax code relates to.

MDMD

gary44 wrote: »

Contribution into pension via employee scheme. Paid before tax (comes out of gross salary) Tax relief at basic rate. Currently pay higher rate (40%) tax on a proportion of income

This doesn’t quite make sense if the payments are paid out of gross salary then (as mentioned above) you have nothing to claim as you will get relief at the appropriate rate automatically, but you state above that you pay tax at 40% but only get 20% relief

xylophone

Is the income he mentions in addition to the salary with the net pay pension relief?

gary44

Thanks for your advice. I'll call HMRC in the morning and sort it out

Dazed_and_confused

This doesn’t quite make sense if the payments are paid out of gross salary then (as mentioned above) you have nothing to claim as you will get relief at the appropriate rate automatically, but you state above that you pay tax at 40% but only get 20% relief

It seems as though only 20% relief is being obtained when the job is only in the basic rate bracket.

But when there is other income such as in the op's situation which makes them higher rate overall it works out that they receive the correct amount of (higher rate) tax relief overall.

potts8

This is the same as it is at my employer. Even though my sole salary from my employer is in the high rate tax bracket, they only ever claim relief for 20%. I then do the same and claim the high rate relief via a change in tax code.