Workplace DC vs SIPP - Higher Tax Rate

Malibusmash

I read that contributions paid into a workplace DC pension (Relief at Source) do not count if you are trying to lower your tax liability, compared with putting contributions into a SIPP.  Could someone please confirm if this is true or not?  Many thanks.
(Hypothetical example:-  If I wanted to put the full £40k allowance but split it £20k workplace DC and £20k into SIPP, then only £20k would count towards lowering my tax liability).

jem16

Both a Relief at Source workplace pension and a SIPP work in exactly the same way. In both cases you’re paying in an amount after tax and the pension provider adds on the tax relief. 

Are you thinking of a net pay arrangement where your contribution is paid from your salary before tax which lowers the amount of tax taken via your salary?

Dazed_and_C0nfused

Where did you read that?

They should both work in the same way however for most people they don't lower their personal tax liability.

If you are an intermediate (Scotland) or higher rate payer then some additional tax relief will be due.  But that extra relief is limited by the amount of intermediate or higher rate tax paid, it isn't an automatic "extra 20%" as a lot of people seem to assume.

Albermarle

I read that contributions paid into a workplace DC pension (Relief at Source) do not count if you are trying to lower your tax liability, compared with putting contributions into a SIPP. 

You have misunderstood or have been reading fake news .