Have I been taxed correctly?

Shevek

Hi all, 

I've just run my P60 through Listentotaxman.

If I put the numbers in from the P60, the Total Tax Due figure matches what I have paid (there's a difference of < £1)

However, I am enrolled in a NEST Worpklace pension, and if I enter the Pension Contribution into Listentotaxman, the Total Tax Due is now quite a bit lower.

Have I paid too much tax?

Is my company calculating my tax incorrectly?

TIA

Dazed_and_C0nfused

Nest operate a "relief at source" pension scheme so the pension contributions you make don't tend to make any difference whatsoever to the amount of income tax you pay.

Relief at source is where the pension company adds basic rate tax relief to your pension contributions.  So if you contribute £40 they will add £10 to make a gross contribution of £50.

If you expect your taxable income for 2021:22 or 2022:23 to exceed £50,270 you may be due some higher rate tax relief, which does save you some income tax it doesn't get added to your pension fund.

So check your Nest account to make sure the tax relief is being added.

There is no tax relief at all due to you on employer contributions 

Shevek

Thanks for the explanation.

I've just logged in and can see a "Tax relief" entry under the "Your contributions" section, so assume all is good.

Thanks again!

Dazed_and_C0nfused

Great.  I should have said the £50,270 figure is a lot less (£43-£44k) if you are Scottish resident for tax purposes.

Shevek

I didn't know about the higher rate tax relief, I'm off to fill out a self assessment!

thank you once more!

Dazed_and_C0nfused

There is no need to complete a Self Assessment return just to claim higher rate tax relief on pension contributions.

If you have to complete one for some other reason i e. HICBC or ANI > £100k then you will get the relief via your return but if there is no other reason to complete one you don't need to just for this.