Self Assessment

aphill24

Hi, I'm filling in my self assessment form for tax year ending 2019. Where it asks if I have made personnel pension contributions I am a little confused. I understand I don't need to put down contributions made to my DB pension as it states I don't need to include these but what about my AVC payments and payments to a dc scheme which are also both done through my pay slip weekly.
Iv'e been paying £60 p/w into the avc and £10 p/w into the dc pension ( It is a salary sacrifice scheme linked to annual pay rise benefits)
I earned £54k last year and am wondering how I claim the tax relief on these pension contributions.
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Dazed_and_confused

The whole point of salary sacrifice is that you don't make any pension contributions. You agree to a lower pay figure in return for your employer making a pension contribution.

As such you cannot claim any tax relief.

aphill24

Thanks, I have had a further look and I don't need to claim relief as it is all done through my PAYE.
I actually do make contributions to my salary sacrifice scheme as the £10 I pay in which is matched by my employer actually only costs £6/7 as it is taxed at source.

Dazed_and_confused

I think you are confusing yourself.

The point of salary sacrifice is that you get reduced pay and as a result you pay less tax and National insurance simply because you don't have that pay to be taxed on the first place.

So for example if you sacrifice £100 and would otherwise earn enough to be paying basic rate tax and full National insurance on the £100 you have effectively saved £20 (may be different if you are Scottish resident for tax purposes) in tax and £12 in National Insurance.

Your employer then pays £100 into your pension but there is no pension tax relief due on an employer contribution.

I have never seen any poster before you claim to pay into a salary sacrifice pension.

aphill24

Thanks for the replies, I have mixed up salary sacrifice with the dc pension sorry