Pension on Self Assessment / Tax Code

Lisa1978

Morning,

I submitted a figure of £1,523 on my SA tax return as gross payments for pension.

I have noticed in calculating my Tax Code HMRC have added 1/2 of this, £762 to my Personal allowance of £12,500. Is this correct? Should only 1/2 be added?

Thank you.

BoGoF

The tax code adjustment assumes you will be paying a similar contribution in the current tax year - will you?

If so and ssuming you are a higher rate taxpayer then that adjustment is correct. You have had 20% relief already on the £1523 = £304.60. If you are higher rate you are due a further 20%. Increasing your tax code by £762 saves you that at 40% = £304.80 which equates to the additional 20% due.

Lisa1978

BoGoF wrote: »

The tax code adjustment assumes you will be paying a similar contribution in the current tax year - will you?

If so and ssuming you are a higher rate taxpayer then that adjustment is correct. You have had 20% relief already on the £1523 = £304.60. If you are higher rate you are due a further 20%. Increasing your tax code by £762 saves you that at 40% = £304.80 which equates to the additional 20% due.

Thank you for explaining. My employers pays 4.5% and i pay 3.5% to bring it up to the 8%. I am intending to increase this with a payrise in April but for now that is the contributions.

Lisa1978

PS i am a higher tax payer.

BoGoF

Just make sure that you have not already had full relief at source via salary sacrifice or the pension contributiom being deducted from gross pay.

You are not due any further relief in these circumstances.

zagfles

BoGoF wrote: »

Just make sure that you have not already had full relief at source via salary sacrifice or the pension contributiom being deducted from gross pay.

You are not due any further relief in these circumstances.

Previous post of OP's shows it is a RAS scheme, so declaring it as a RAS contribution is correct. Assuming it's still the same as then:

https://forums.moneysavingexpert.com/discussion/6041423/payslip-query-childcare-vouchers