Self Assessment gross pension payment query
Options
fluffig
Posts: 433 Forumite
in Cutting tax
Am mid tax return and have got stuck on gross pension payments. I have read HMRC 'help' on this, but am still confused.
Net pension payments last year were £15,400. I understand that adding 25% to gross them up makes them £19,250. But, as the 25% is credited to the pension account monthly at the end of the each following month, a tax year was crossed and so £500 of that gross will go through in this financial year, rather than last.
So. Do I input £19,250 which is mathematically correct, even though £500 of it is going through this financial year? Or £18,750 which is what has actually been paid into the pension last financial year?
Net pension payments last year were £15,400. I understand that adding 25% to gross them up makes them £19,250. But, as the 25% is credited to the pension account monthly at the end of the each following month, a tax year was crossed and so £500 of that gross will go through in this financial year, rather than last.
So. Do I input £19,250 which is mathematically correct, even though £500 of it is going through this financial year? Or £18,750 which is what has actually been paid into the pension last financial year?
0
Comments
-
I think you are over complicating this.
Your net payment is £15,400 so the gross is £19,250.
Some pension companies pre-fund the tax relief others don't but I don't think there is any difference in tax treatment. It is when you made your payment which counts.0 -
Dazed_and_confused wrote: »I think you are over complicating this.
Your net payment is £15,400 so the gross is £19,250.
Some pension companies pre-fund the tax relief others don't but I don't think there is any difference in tax treatment. It is when you made your payment which counts.
Thank you! I think you're right. I'm over complicating it. I'll input the mathematically correct version.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards