We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Over PSA tax payment

duckson · 2023-06-27 11:53:35

If you go over your PSA in any given tax year and you are PAYE do you need to fill in a self assessment form or should the interest already be known by HMRC automatically (from what your banks etc have sent to them) and hence your tax code is then changed to recoup the relevant tax on the interest that is due?

Comments

Dazed_and_C0nfused Posts: 19,327 Forumite

28 June 2023 at 11:16AM

duckson said:

Ok so the £120 per month SIPP payment wouldn’t come off her yearly income total but her workplace pension would?

Depends on the method used for her workplace pension. Net pay contributions reduce taxable income but RAS contributions don't and some workplace pensions use RAS.

0