Claiming tax relief on workplace pension

lee989

I'm a higher rate tax payer, my employer operates a workplace pension scheme through Scottish Widows. My contributions are made AFTER tax is deducted (not salary sacrifice). I can see on my Scottish Widows payment history that they have already claimed the basic tax relief of 20%, so I need to claim the other 20% via my self assessment (which i'm already registered for).

On the self assessment there are 2 inputs that match my scenario and i'm not 100% sure which to fill in.

Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source)

--- or ---

Payments to your employer's scheme which were not deducted from your pay before tax

The first feels like the most appropriate, as specifically mentions that I am claiming the additional relief, but the second one mentions employers scheme (but doesn't mention relief at source).

I'm sure someone on here must also have to do this, which input do you fill in?

Dazed_and_C0nfused

It is the first one.

The second is for gross payments where no tax relief whatsoever had already been received.  Typically lump sums paid to purchase additional pension in defined benefit schemes.

When you check your Self Assessment calculation you will see that there is no "additional relief" as such.  Your basic rate tax band gets increases which in turn can mean income which would otherwise be taxed at 21/40/41/45/46% is now taxed at a lower rate.  That is how the personal tax benefit is received (over and above the amount added to the pension fund)

lee989

@Dazed_and_C0nfused  Thanks!
And additional gratitude for explaining the calculation and the extension of the basic rate, it really helps. Indeed I do see that the basic rate band is increased when placed in the first option.

Dazed_and_C0nfused

A useful thing to do is to view your calculation with the pension contribution entry and note the bottom line of the calculation.

Then include the pension contribution and look at the revised calculation.

The difference between the two is the actual personal tax benefit to you.

Albermarle

If this is the first time you have claimed the higher rate relief then you will probably get a rebate/bank transfer  for 19/20.
Then they will adjust ( increase) your tax code for 20/21 on the assumption you will make a similar level of contributions this year . So you will see an increase in your net pay each month but no rebate will be due later.