Declaring private pension contributions

leopoldo_2

I'm self-employed and I opened a private pension during the last tax year. I am doing my self-assessment for 21-22 now and I am unsure whether I need to include it on my tax return. I've already had tax relief at source (it's with Penfold) and I am below the higher tax bracket.

https://getpenfold.com/news/self-assessment-tax-return-pension-contributions this suggests I can leave it out, but I was under the impression that it had to be included regardless.

Any idea?

Thanks

Dazed_and_C0nfused

Yes you need to include it.  Even if it doesn't alter your tax liability.

leopoldo_2

I feared as much, the information is very unclear. I have submitted the return without it and cannot find an option to amend it now so I guess I will have to wait.

Thanks

Dazed_and_C0nfused

This seems quite clear.

https://help.getpenfold.com/en/articles/4063480-how-do-i-calculate-my-self-assessment-tax-return

You will need to wait a few days I think then you should be able to amend your return.

leopoldo_2

Aye, will go back after the weekend. According to the article I linked above from the same website only people in higher tax brackets need bother, seems to contradict itself

Albermarle

Yes they do contradict themselves, and the article you linked is incorrect.
Also it gives the impression that to claim back higher rate tax relief, you have to fill in a tax return, which you do not.
Someone not currently doing SA, but who wants to claim higher rate tax relief, can just inform HMRC of their pension contributions and that is enough.

Faselei

Apologies for adding to this thread but I've a related question...

For SA (for higher rate relief) should I include payroll deducted gross contributions (to NEST DC scheme) as well as payments made directly to DC  pension funds from net salary?

Payroll deductions are just usual gross deductions and not via salary sacrifice.

Dazed_and_C0nfused

If you mean net pay deductions, for example salary £50,000 with 10% employee net pay pension contributions = taxable pay £45,000, then no.

You have received the maximum possible tax relief at the point the deduction was made.

In the example above your P60 would show taxable pay of £45,000, not £50,000.

zagfles

Dazed_and_C0nfused said:

If you mean net pay deductions, for example salary £50,000 with 10% employee net pay pension contributions = taxable pay £45,000, then no.

You have received the maximum possible tax relief at the point the deduction was made.

In the example above your P60 would show taxable pay of £45,000, not £50,000.

NEST uses RAS, not net pay. But it could be sal sac of course.

zagfles

Faselei said:

Apologies for adding to this thread but I've a related question...

For SA (for higher rate relief) should I include payroll deducted gross contributions (to NEST DC scheme) as well as payments made directly to DC  pension funds from net salary?

Payroll deductions are just usual gross deductions and not via salary sacrifice.

When you say "payroll deducted" do you mean salary sacrifice or normal employee contributions?

If you're not sure, do NEST add tax relief to your pension? Are you taxed and NI'ed on your full pay, or pay after the pension contribitions have been deducted? Look at how your "taxable to date" increases from one payslip to the next.

If tax relief is added by NEST, then the contributions must come from after tax pay and so are RAS, and you can claim extra tax relief if you pay higher rate tax.