40% tax payer - Pension Contribution- Wage Slip

guy999

Hi
I'm a little unsure as to whether or not I need to reclaim tax back on my tax return for my pension contributions.

Each month i pay into my works pension scheme 10% of my salary.

However checking my payslip i'm confused.

From my wageslip is the following
tax code k161

basic 3916.67

less tax 886.93
less ni 323.03
less pension 391.67
net pay 2315.04

However after using payslip internet checker if i put following in
basic 3525 (3916.67 less 391.67)
gives
less tax 922.70
less ni 277.92
net pay 2324.38

However my query is that shouldnt i get back 20% tax on my pension payment, so shouldnt 2315.04 be higher than 2324.38.
And why is my NI so high?

Can anyone shed light on this
Thanks

whu

Hi
As you are a higher rate tax payer you should be able to claim 18% tax relief on your gross contributions for the last tax year - the formula is gross pension contributions multiplied by 100 and divide by 78 - this is what i have been advised by work - i think from this tax year the relief will be 20% - you have to claim this back from HMRC

jem16

guy999 wrote: »

However checking my payslip i'm confused.

From my wageslip is the following
tax code k161

basic 3916.67

less tax 886.93
less ni 323.03
less pension 391.67
net pay 2315.04

However after using payslip internet checker if i put following in
basic 3525 (3916.67 less 391.67)
gives
less tax 922.70
less ni 277.92
net pay 2324.38

Is this for tax year 2007/8 or this year?

If this tax year I make the tax £863.67

However my query is that shouldnt i get back 20% tax on my pension payment, so shouldnt 2315.04 be higher than 2324.38.

By the look of it you pay your pension from gross salary before you are taxed. In that case you have the full 40% tax relief at source as you are taxed after the pension contribution is taken off so it reduces your taxable income.

And why is my NI so high?

Your NI is based on your whole basic pay - i.e. £3916.67

guy999

The above was from my last wage slip april 08.

However i now think that £391.67 goes into my pension, hence why my salary is similar to 3525 example for tax.
However if your saying NI is calculated on everything presumably why i'm picking up less than if i earnt 3525 being 1% ni

Is this right
Thanks

guy999

I'm a little confused as using same tax central payroll checker says i should be paying at based on 3916.67 NI at £281.83.
Why then am i paying £323.01.

jem16

guy999 wrote: »

The above was from my last wage slip april 08.

However i now think that £391.67 goes into my pension, hence why my salary is similar to 3525 example for tax.

Yes you are being taxed after your pension payments have been taken off. So you get all your tax relief at source, in your case 40%. So you would not enter these pension contributions on your tax return. It's easy to check from your P60 - if your taxable income for the year is less than your actual salary by the amount you pay into your pension then you have been given full tax relief.

However if your saying NI is calculated on everything presumably why i'm picking up less than if i earnt 3525 being 1% ni

Is this right
Thanks

Yes it is.

jem16

guy999 wrote: »

I'm a little confused as using same tax central payroll checker says i should be paying at based on 3916.67 NI at £281.83.
Why then am i paying £323.01.

Listentotaxman.com says you should be paying £322.78 on £3916.67

http://www.listentotaxman.com/index.php?c=1&yr=2008&age=0&add=0&code=k161&pension=0&time=12&ingr=3916.67&vw%5B%5D=yr&vw%5B%5D=mth&vw%5B%5D=wk

guy999

Thanks thats a good website, the other one gives different figures, cant have been updated
Cheers