Is 20% tax relief counts towards annual allowance?

btcp

I paid 30k into my workplace pension this tax year through salary sacrifice. I may end up with a 10k bonus and was thinking to pay it into pension. As pension company adds 20% to the amount, my question is if 20% extra would count toward 40k annual allowance? Should I pay 10k or 8k to benefit from the tax relief?

BoGoF

It's the gross contribution that counts, inclusive of tax relief.

Dazed_and_confused

When it's your contribution not an employer contribution the pension company adds 25%, not 20%.

btcp

Dazed_and_confused wrote: »

When it's your contribution not an employer contribution the pension company adds 25%, not 20%.

Thank you for correcting, I see on my statement now that previous payments were at 25%.

I started to get a bit confused if I am actually have a 40k allowance. I read that the allowance is reduced if threshold income is above 110k. How is that calculated? I am expecting to have around 120k gross income this year and I cannot work it out looking at HMRC site...

anselld

btcp wrote: »

Thank you for correcting, I see on my statement now that previous payments were at 25%.

I started to get a bit confused if I am actually have a 40k allowance. I read that the allowance is reduced if threshold income is above 110k. How is that calculated? I am expecting to have around 120k gross income this year and I cannot work it out looking at HMRC site...

The AA reduction comes in above £150k.
You may also have unused allowance from previous years to consider.