Claiming 40% relief on pension contributions

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81891245#Comment_81891245

You follow the instructions on your Self Assessment return.

Which would never be to add a figure that is more than your gross contribution (£1,250 in your example) 😳

A gross contribution of £1,250 will increase your basic rate band by £1,250.

DRS1

If you are on 51750 and you need to get below 50270 then it is simple subtraction to get a gross contribution of 1480.which gives a net contribution of 1184.

Do double check with SL that they will treat your contribution as a relief at source contribution and claim the basic rate tax relief.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81891455#Comment_81891455

OP- This is important. Your workplace pension is set up to just receive employer contributions ( as it is a salary sacrifice arrangement) . Normally you can still add a lump sum and basic rate tax relief will be added. However we have seen on a number of threads that sometimes the basic rate relief is not added, and then it will be a long battle with HMRC to get it sorted out. So as suggested check in advance.

OscarJack15

https://forums.moneysavingexpert.com/discussion/comment/81891461#Comment_81891461

Thanks both. Yes I can see (when in the SL app) if a enter £1000 as a contribution, it adds the £250 basic relief so £1,250 is added to my fund

DRS1

@OscarJack15 Just one thought. You have savings interest. If you want to keep your PSA at £1k (instead of £500) you need to make sure you contribute enough that you are a basic rate taxpayer. So enough relief at source contributions to raise your higher rate threshold to be above your total taxable income. You probably already know that but I just thought I would mention it in case you decided to limit your contribution to £1000.

OscarJack15

https://forums.moneysavingexpert.com/discussion/comment/81892659#Comment_81892659

Thanks - yes that was part of my thinking👍️