On higher rate pension tax relief but moving to new job. Will it transfer automatically?

Da_Crojanz

Earlier this year I found I was eligible for higher rate tax relief on my pension as it is a "relief at source" pension. I called up HMRC and they arranged it and it's been reflected in my payslip.

I move to a new job next month which is on higher pay. Should the pension setup also be relief at source, do I need to inform HMRC again or would the tax relied be applied automatically? I expect the former but was wondering if anyone knew for certain.

Dazed_and_C0nfused

Da_Crojanz said:

Earlier this year I found I was eligible for higher rate tax relief on my pension as it is a "relief at source" pension. I called up HMRC and they arranged it and it's been reflected in my payslip.

I move to a new job next month which is on higher pay. Should the pension setup also be relief at source, do I need to inform HMRC again or would the tax relied be applied automatically? I expect the former but was wondering if anyone knew for certain.

You only need to tell them of any significant changes to your taxable earnings or relief at source contributions.

If you hand your P45 to your new employer then they will continue to use the existing tax code.

Albermarle

 Should the pension setup also be relief at source,

Suggest you find out how your new employer organises pension contributions. It is quite possible that they will not be using Relief at Source payments.

It could be Net Pay, or salary sacrifice. In both cases you get all tax relief effectively automatically paid into your pension, so you would have to inform HMRC of no future Relief at source contributions.