pension contribution on self assessment

honeststeveo

Hi all

I'm trying to fill in the pension contribution part of my self assessment online and am unsure on a couple of things.

I have a pension with Nest which my employer deducts employee deductions from my post tax pay (relief at source). I also have a personal pension. Contributions to both of these have been made in the tax year.

I understand that the personal pension contribution goes in the box "Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider (called ‘relief at source’)" and you gross up the net amount before entering it. This is pretty clear from the help notes.

But with the nest pension I'm not so sure. Maybe it goes into the box: "payments to your employer's scheme which were not deducted from your pay before tax". I'm not sure if it's an "employer's scheme"? Nest themselves describe it as a "workplace pension". Moreover if you expand the help section beneath this box the scenarios where this might be applicable don't seem to include this scenario.

So which box should the nest contributions go in - (should they get added to the first box i mentioned? ) and should they be grossed up or net figures?

TVAS

It is an employer scheme, a workplace pension is an employer scheme. You cannot be part of that workplace scheme unless you currently or previously worked there.

honeststeveo

TVAS said:

It is an employer scheme, a workplace pension is an employer scheme. You cannot be part of that workplace scheme unless you currently or previously worked there.

Thanks for the speedy reply TVAS. OK so presume the second box I described is the correct place for it then. Do you know if it should be entered net or gross? The help notes are silent.

Dazed_and_C0nfused

You aren't making contributions which meet that criteria.

You are making two separate "relief at source" contributions so they both go in the same box.

The other box is for gross contributions where no tax relief has been received when the payment is made, typically lump sum payments to public sector DB schemes.  If you read the help notes you will it isn't relevant to you.

I have a pension with Nest which my employer deducts employee deductions from my post tax pay (relief at source). I also have a personal pension. Contributions to both of these have been made in the tax year.

honeststeveo

Dazed_and_C0nfused said:

You aren't making contributions which meet that criteria.

You are making two separate "relief at source" contributions so they both go in the same box.

The other box is for gross contributions where no tax relief has been received when the payment is made, typically lump sum payments to public sector DB schemes.  If you read the help notes you will it isn't relevant to you.

Yes, that makes sense as it does seem to me that they should be treated in the same way since they are both coming from my pocket of post tax pay. The only difference being that one payment is instructed by the employer and the other by me. That said I wouldn't know if HMRC perhaps wanted them in different boxes to give them a breakdown of who initiated payment so to speak.

I don't think I quite agree regarding your last sentance though as it seems to me that "relief at source" is a misleading description. At the moment the payment is made there is zero tax relief then a month or so later the pension scheme admin comes along and adds it. I am probably just getting hung up on semantics.

So finally just to double check both net totals should be added together then grossed up to enter into that first box?

Dazed_and_C0nfused

The names are confusing but contributions where the pension company adds basic rate tax relief, either immediately or when they get it form HMRC, are known as relief at source

Yes, you are making two relief at source contributions and they should go in the same box with the basic rate tax relief included (when the  basic rate relief is added to the pension fund is irrelevant it is when you make the contribution which counts).

honeststeveo

Dazed_and_C0nfused said:

The names are confusing but contributions where the pension company adds basic rate tax relief, either immediately or when they get it form HMRC, are known as relief at source

Yes, you are making two relief at source contributions and they should go in the same box with the basic rate tax relief included (when the  basic rate relief is added to the pension fund is irrelevant it is when you make the contribution which counts).

That's great! Many thanks for clarifying.

Albermarle

though as it seems to me that "relief at source" is a misleading description

Yes it is, and also confusing is that if contributions are taken out before tax it is called a Net Pay Arrangement .

Most people would assume this meant that the contributions come out of net ( after tax ) pay .