Pension contribution question on Tax Return

mailsmsi · 24 May 2018 at 8:28PM

I am contributing a small amount by monthly direct debit from bank account to my workplace pension. Started this contribution while switching job,when no contribution made by employer.My current employer also contributing.

On the income tax return form , I find the following questions.

(Q1)

Did you make contributions towards a personal pension or retirement annuity? This does not include payments you make to your employer's pension scheme, which are deducted from your pay:

YES

Personal pensions and retirement annuities

(Q2)

Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source). Enter the payments and basic rate tax:£

(Q3)

Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source). Enter the payments and basic rate tax:£

(Q4)
Payments to your employer's scheme which were not deducted from your pay before tax:£

(Q5)

Payments to an overseas pension scheme which is not UK-registered which are eligible for tax relief and were not deducted from your pay before tax:£

Which question is applicable in my situation ?

mailsmsi · 26 May 2018 at 10:28AM

Any advice please .

zagfles · 26 May 2018 at 10:33AM

This is a very weird way of doing things. So you don't see anything on payslip about this pension? Just the DD? Does the pension provider claim tax relief? I don't think those pasted Qus are right - 2 and 3 are identical.

Dox · 26 May 2018 at 10:56AM

Personal DDs are personal contributions made direct to the pension provider, so wouldn't appear on a payslip. Sensible thing to do while 'between jobs'.

Q1: answer is yes
Q2: answer is the amount you actually paid + basic rate tax e.g. if you actually paid £80 by DD, enter £100 (£80 you paid + £20 tax relief claimed on your behalf by the provider and added to your 'pot' with them). I've assumed you are in England/Wales
Q4: applies if you had any pension contributions deducted from net (i.e. post-tax) pay by an employer during the tax year in question

bearshare · 26 May 2018 at 10:56AM

You are paying contributions from post-tax (net) income, so
"(Q4)
Payments to your employer's scheme which were not deducted from your pay before tax:£"

Would be the one. You should get basic rate tax refunded, presumably into the employers scheme.

Odd way of doing it though...

zagfles · 26 May 2018 at 11:07AM

bearshare wrote: »

You are paying contributions from post-tax (net) income, so
"(Q4)
Payments to your employer's scheme which were not deducted from your pay before tax:£"

Would be the one. You should get basic rate tax refunded, presumably into the employers scheme.

Odd way of doing it though...

That would only apply if it's not a RAS scheme, as it states in the SA100 notes.

zagfles · 26 May 2018 at 11:13AM

Dox wrote: »

Q4: applies if you had any pension contributions deducted from net (i.e. post-tax) pay by an employer during the tax year in question

Not if it's to a RAS scheme, eg a GPP (group personal pension). This question is for exceptional direct payments (ie not via payslip) to a "net pay" type scheme where no tax relief is added by the scheme.

If the employer's usual way of doing contributions is deducting from after tax pay, it'll almost certainly be to a RAS scheme. So this would not be the correct box to use.

mailsmsi · 28 May 2018 at 4:24PM

Thank you all. I get some idea how to fill the tax return form
from all of your reply.

Additional information :

This is NEST workplace pension.
And my income tax band is 20% basic rate and live England.

According to my employer

The amount that employee contributed is shown as a reduction from gross pay so that employee and employer will pay less NIC.

So I think my employment contribution is
Gross tax basis (deducting contributions before tax)
https://thepeoplespension.co.uk/help/knowledgebase/are-the-contributions-paid-net-or-gross/

Any other suggestion will be highly appreciated.

zagfles · 28 May 2018 at 4:57PM

mailsmsi wrote: »

Thank you all. I get some idea how to fill the tax return form
from all of your reply.

Additional information :

This is NEST workplace pension.
And my income tax band is 20% basic rate and live England.

According to my employer

The amount that employee contributed is shown as a reduction from gross pay so that employee and employer will pay less NIC.

So I think my employment contribution is
Gross tax basis (deducting contributions before tax)
https://thepeoplespension.co.uk/help/knowledgebase/are-the-contributions-paid-net-or-gross/

Any other suggestion will be highly appreciated.

The highlighted bit implies it's salary sacrifice. That's the only way that NICs will be reduced through pension conts.

So how come you're paying by DD from your bank account? If it's being taken from your pay?

mailsmsi · 30 May 2018 at 9:54PM

Thanks zagfles .

1) Employers pension is the Salary Sacrifice in Nest Pension.

2)I also make personally separate contribution to Nest Pension by
monthly direct debit.

With the above information , is my answer for the tax return question will be changed?

zagfles · 30 May 2018 at 10:05PM

mailsmsi wrote: »

Thanks zagfles .

1) Employers pension is the Salary Sacrifice in Nest Pension.

2)I also make personally separate contribution to Nest Pension by
monthly direct debit.

With the above information , is my answer for the tax return question has changed?

Do they go into the same account? Or are they accounted for separately?

The important question is does NEST claim tax relief on the monthly DD payments? How do these show up on the account? Can you see tax relief added to those payments? Maybe a month or 2 later?

Pension contribution question on Tax Return

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