Pension and tax question

Twentytwothousand

I’m confused by tax relief and pensions.  between employer and my deductions 17% of my salary goes into a workplace pension. My contribution is 10% of that, £8k a year. In addition I pay £2400 into a Private Pension.   I am a Higher Rate Tax payer.  Such a basic question but what tax relief should I be claiming? 

Tia 

Dazed_and_C0nfused

What method is used for the £8k contribution?

Relief at source or net pay?

Presumably the £2,400 is relief at source.  Is the £2,400 your contribution of the gross amount with basic rate tax relief added?

Twentytwothousand

Dazed_and_C0nfused said:

What method is used for the £8k contribution?

Relief at source or net pay?

Presumably the £2,400 is relief at source.  Is the £2,400 your contribution of the gross amount with basic rate tax relief added?

It’s £2,400 before pension company adds 20%.  Ie that’s what comes from my bank account.

the £8k is from my payslip.  So at source? 

Dazed_and_C0nfused

Payslip deductions can be net pay or relief at source.

It is important to know which as that will determine what you need to tell HMRC.

If your salary is say £50k but your P60 shows taxable pay as £42k then it sounds like net pay.

If it is deducted after tax and the pension company adds 25% then it is relief at source.

Or if you don't actually pay anything and your employer pays extra due to agreeing to a reduced salary it is salary sacrifice.  But there is no pension tax relief due on salary sacrifice.

Twentytwothousand

Yes, net pay for the £8k.  The P60 shows less than my salary.

Albermarle

So for the £8K there is no more tax relief due,  as you do not pay any tax on it in the first place . 
For the separate contribution , the provider adds basic rate tax relief and you have to claim the extra higher rate relief from HMRC. They will pay it via a tax refund or by increasing your tax code.

Twentytwothousand

Albermarle said:

So for the £8K there is no more tax relief due,  as you do not pay any tax on it in the first place . 
For the separate contribution , the provider adds basic rate tax relief and you have to claim the extra higher rate relief from HMRC. They will pay it via a tax refund or by increasing your tax code.

Thank you. And is that entered as the full amount of pension or just the difference? Ie as £2,400 or as £480?

Dazed_and_C0nfused

Entered where?

xylophone

Entered where?

On his tax return?

xylophone

Thank you. And is that entered as the full amount of pension or just the difference? Ie as £2,400 or as £480?

Where does the £480 come from?

If you have made a payment of £2400 from your bank account to your personal pension provider, tax relief of £600 should have been added to your pot.

Thus the figure for the tax return would be £3000.

See TR 4 (2020) Box 1 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/874083/sa100_English_Form.pdf

Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider (called ‘relief at source’). Enter the payments and basic rate tax

Albermarle

Twentytwothousand said:

Albermarle said:

So for the £8K there is no more tax relief due,  as you do not pay any tax on it in the first place . 
For the separate contribution , the provider adds basic rate tax relief and you have to claim the extra higher rate relief from HMRC. They will pay it via a tax refund or by increasing your tax code.

Thank you. And is that entered as the full amount of pension or just the difference? Ie as £2,400 or as £480?

If you fill out a self assessment form ( less and less people do nowadays ) then there should be an explanation of what to do .
If I remember correctly you have to fill in the gross amount . So £2400 + the tax relief already gained , so £3000 .