When does HRMC class pension tax relief as credited?

BattyJ

Hi All

I make the most of my £60k annual pension which includes the associated tax relief. (Edited for clarity)

I get paid on the 25th of each month and the associated tax relief on my contributions usually gets credited by the Nest pension several weeks later, usually around the 12 of the following month.

I also pay into a SIPP on the 1st of each month and the tax relief is also credited a few weeks later.

Hence my question….
When I get paid the end of March 2025 the tax relief is credited by Nest mid April. Also the tax relief on SIPP contributions made 1 April get credited a few weeks later. Thus the tax relief reaches the account in the next tax year. 

In my tax return, which year does the tax relief for March get credited too since it reaches my account in the following tax year?

Dazed_and_C0nfused

BattyJ said:

Hi All

I make the most of my £60k annual pension and associated tax relief.

I get paid on the 25th of each month and the associated tax relief on my contributions usually gets credited by the Nest pension several weeks later, usually around the 12 of the following month.

I also pay into a SIPP on the 1st of each month and the tax relief is also credited a few weeks later.

Hence my question….
When I get paid the end of March 2025 the tax relief is credited by Nest mid April. Also the SIPP contributions made 1 April get credited a few weeks later. Thus the relief reaches the account in the next tax year. 

In my tax return, which year does the tax relief for March get credited too since it reaches my account in the following tax year?

They are always treated as received when the net contribution is.  You cannot have a contribution in one tax year and the tax relief in another tax year.

The rules are detailed here.

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm041000

Grumpy_chap

BattyJ said:

I make the most of my £60k annual pension and associated tax relief.

Just to clarify, the standard AA is £60k including any associated tax relief, not £60k and (plus) tax relief.

That £60k gross cannot exceed your relevant earnings for personal (individual / employee) contributions, though employer contributions are not restricted by relevant earnings.

Higher limits can be available when carry-forward is an option.

BattyJ

Dazed_and_C0nfused said:

BattyJ said:

Hi All

I make the most of my £60k annual pension and associated tax relief.

I get paid on the 25th of each month and the associated tax relief on my contributions usually gets credited by the Nest pension several weeks later, usually around the 12 of the following month.

I also pay into a SIPP on the 1st of each month and the tax relief is also credited a few weeks later.

Hence my question….
When I get paid the end of March 2025 the tax relief is credited by Nest mid April. Also the SIPP contributions made 1 April get credited a few weeks later. Thus the relief reaches the account in the next tax year. 

In my tax return, which year does the tax relief for March get credited too since it reaches my account in the following tax year?

They are always treated as received when the net contribution is.  You cannot have a contribution in one tax year and the tax relief in another tax year.

The rules are detailed here.

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm041000

Thank you that is exactly what I was checking

BattyJ

Grumpy_chap said:

BattyJ said:

I make the most of my £60k annual pension and associated tax relief.

Just to clarify, the standard AA is £60k including any associated tax relief, not £60k and (plus) tax relief.

That £60k gross cannot exceed your relevant earnings for personal (individual / employee) contributions, though employer contributions are not restricted by relevant earnings.

Higher limits can be available when carry-forward is an option.

Yes agreed. It was probably my poor wording. 

Albermarle

Just to clarify, the standard AA is £60k including any associated tax relief, not £60k and (plus) tax relief.

Also includes any employer contributions, where that is relevant.