📨 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!

Adjusting estimated PAYE income to account for Private Pension Contributions

Options
I have recently started paying into a private pension and reduced my contributions to my employers scheme to the minimum. I am a higher rate tax payer so will need to claim tax relief on my private pension contributions via self assessment. My question is.. is it acceptable to reduce my estimated annual PAYE income to account for my planned private pension contributions? That way I can take advantage of the tax relief now rather than having to pay the tax and claim it back next year. 

Thanks 

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,648 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Manch said:
    I have recently started paying into a private pension and reduced my contributions to my employers scheme to the minimum. I am a higher rate tax payer so will need to claim tax relief on my private pension contributions via self assessment. My question is.. is it acceptable to reduce my estimated annual PAYE income to account for my planned private pension contributions? That way I can take advantage of the tax relief now rather than having to pay the tax and claim it back next year. 

    Thanks 
    No.  If you contribute to a personal pension it has no impact whatsoever on your taxable income.

    But you can claim extra relief provisionally using the new form on gov.uk.   Ensuring your estimated earnings are accurate on gov.uk is key to making sure you receive the correct extra relief.  Which will be via a tax code change for the current tax year.

    https://www.gov.uk/guidance/claim-tax-relief-on-your-private-pension-payments
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.2K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.