Checking numbers...

ac198179

[Deleted User] said:

ac198179 said:

Thanks everyone - glad I came here to check! I'll adjust my figures to take account of bank account interest. What about if I claim the working from home tax relief on my self-assessment this year (genuine claim, been at home since March)? Does that increase my taxable pay or does the £6/week get knocked off my taxable pay?

It reduces your taxable pay. However, we are dealing with small margins here! Personally, from your first post where there was no mention of any income other than salary, I would be rounding up my contribution to £11000. But, each to their own!

Just checked and I've had £106 of interest from my savings - whoop whoop! I'll add that to my calculations and yes, I think you're right, I'll just round it up to £11,000.

ac198179

Final question...so a total of £12,050 into my SIPP (£1050 already paid, £11,000 to pay) would be grossed up to £15,062.50 with the difference claimed as tax relief by my SIPP provider and paid automatically into my SIPP. Am I right in assuming that because I am a higher rate tax payer I would get an additional £3,012.50 of tax relief paid to me in cash by HMRC via my self assessment?

[Deleted User]

ac198179 said:

Final question...so a total of £12,050 into my SIPP (£1050 already paid, £11,000 to pay) would be grossed up to £15,062.50 with the difference claimed as tax relief by my SIPP provider and paid automatically into my SIPP. Am I right in assuming that because I am a higher rate tax payer I would get an additional £3,012.50 of tax relief paid to me in cash by HMRC via my self assessment?

Broadly. However, it will be restricted to the amount of the gross contribution, when deducted, brings you to 50000. For example, if your income is 64962 and your grossed up contribution is 15062, you will receive additional tax relief of 20% of 14962, not 15062.

ac198179

[Deleted User] said:

ac198179 said:

Final question...so a total of £12,050 into my SIPP (£1050 already paid, £11,000 to pay) would be grossed up to £15,062.50 with the difference claimed as tax relief by my SIPP provider and paid automatically into my SIPP. Am I right in assuming that because I am a higher rate tax payer I would get an additional £3,012.50 of tax relief paid to me in cash by HMRC via my self assessment?

Broadly. However, it will be restricted to the amount of the gross contribution, when deducted, brings you to 50000. For example, if your income is 64962 and your grossed up contribution is 15062, you will receive additional tax relief of 20% of 14962, not 15062.

OK, I see...thank you very much!