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    • daddydodo
    • By daddydodo 12th Oct 18, 3:38 PM
    • 38Posts
    • 19Thanks
    daddydodo
    Reclaim tax on Pension Contributions
    • #1
    • 12th Oct 18, 3:38 PM
    Reclaim tax on Pension Contributions 12th Oct 18 at 3:38 PM
    HI, I'm after some advise pls. I'm a 40% tax payer and I pay into a company pension, I currently get tax relief on my contributions of 20% but I think I am due the relief at 40%.... Anyone any advice on how to claim this back ? I'm in my workplace union and they can do this for me for a fee of 25% but if it isn't too difficult I'll do it myself. So any advice please?
Page 1
    • gdrforest
    • By gdrforest 12th Oct 18, 3:45 PM
    • 17 Posts
    • 5 Thanks
    gdrforest
    • #2
    • 12th Oct 18, 3:45 PM
    • #2
    • 12th Oct 18, 3:45 PM
    If you are paying via payroll deductions it will be before tax so you will automatically be getting 40% tax relief.
    • xylophone
    • By xylophone 12th Oct 18, 5:59 PM
    • 27,645 Posts
    • 16,608 Thanks
    xylophone
    • #3
    • 12th Oct 18, 5:59 PM
    • #3
    • 12th Oct 18, 5:59 PM
    If you are paying via payroll deductions it will be before tax so you will automatically be getting 40% tax relief.
    This is only the case if the company is using "net pay" - if "Relief at Source" the OP will have to reclaim through HMRC.

    https://www.gov.uk/workplace-pensions/managing-your-pension

    https://www.scottishwidows.co.uk/Extranet/Literature/Doc/FP0673
    • Dazed and confused
    • By Dazed and confused 12th Oct 18, 7:41 PM
    • 3,288 Posts
    • 1,655 Thanks
    Dazed and confused
    • #4
    • 12th Oct 18, 7:41 PM
    • #4
    • 12th Oct 18, 7:41 PM
    You cannot claim a flat extra 20%.

    If this is a relief at source payment like a personal pension or SIPP then the gross payment increases the amount of basic rate tax you can pay, which in turn reduces the amount of higher rate tax you might have to pay.

    The exact amount of relief due depends on how much your taxable income is, if you only pay a small amount of higher rate tax then there might not be much extra relief due.

    There really is no need to use a third party for this, HMRC will refund any tax overpaid for prior years (direct to you, not your pension fund) and adjust your tax code for any relief due in the current tax year.

    This all assumes you don't get relief straight away through your wages i.e. salary 50k less 10% pension contribution = 45k taxable salary (your P60 income figure)
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