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Posted Mon, 04 Mar 2024 21:17:42 GMT by eme
Hello, I am looking to make a lump sum contribution to a personal pension and I have a few questions: I am aiming to make contribution that leaves my income below the high rate tax band. I understand that the pension provider will claim 20% additional contribution from the government on top of the contribution I make, and as I am a higher rate tax payer I can then claim additional tax relief on my self assessment tax return . Does my taxable income then become my salary - my own pension contribution, or is it my salary - (my pension contribution + the 20% added) ? I have a similar question regarding the 60k maximum contribution for tax relief - should the number which I compare to that 60k threshold be only my contribution, or my contribution + 20%? Or my contribution + 20% + the additional tax relief I will claim on self assessment? I may also need to consider the carry over allowance of previous years. I was not resident in the UK in 2021/2022 (though I did have a pension account from previous UK employment during that tax year, I made no UK pension contributions during that year). Can I still consider the 40k pension contribution limit from that available to me as carry forward for this tax year, despite not being resident in the UK then? Thank you in advance!
Posted Wed, 06 Mar 2024 15:09:38 GMT by HMRC Admin 20 Response
Hi eme,
For tax relief purposes, the maximum you can pay into your pension scheme is the equivalent of your gross employment/net self employment/net partnership income or £60000.  
This is know as the annual allowance.  Any sum paid into the pension scheme above this allowance, is taxable.  
Any unused annual allowance from the three previous tax years can be added to the annual allowance, to increase the tax relief threshold.  
Any sum that is taxable, must be reported in a self assessment tax return.  
Have a look at Check if you have unused annual allowances on your pension savings, and  HS345 Pension savings — tax charges (2023).
If your pension scheme allows, you can contribute to your pension scheme no matter your residency status.  
Tax relief is only available if your are a 'relevant UK indidividual'.  
Please have a look at the guidance at Pensions Tax Manual PTM044100 - Contributions: tax relief for members: conditions for more information.
Thank you.
Posted Wed, 06 Mar 2024 15:33:26 GMT by eme
Hello, Thanks for your reply. If we leave aside the topic of the carry over allowance, and I assume I have an annual allowance of £60000, can you please clarify : a) Does that translate to a maximum personal contribution of £48000? Because of the additional 12k added to the pension by govt as tax relief? or is it only the personal contribution that is considered for that annual allowance? b) Assuming I make a personal contribution of £48000, when i am working out how that impacts my highest rax income tax band, should I look at my total income - £48000 or my total income - £60000? Thank you
Posted Wed, 06 Mar 2024 21:00:01 GMT by zoez
Hi, I am a higher rate tax payer now and want to make an additional pension contribution. I won't be earning next year, Can I write to HMRC and receive the additional 20% tax relief as way of payment by cheque rather than by self assessment or tax code adjustment?
Posted Wed, 06 Mar 2024 23:32:21 GMT by Davemoo
Can anyone explain the process to claim carry over relief on pension contributions. I cannot see how to do it on my previous online self assessments. I have about £30000 of unused allowance from 2022/23 For 2023/24 I want to claim £90000 total for which I have sufficient income. Thank you
Posted Thu, 07 Mar 2024 11:49:59 GMT by HMRC Admin 25 Response
Hi zoez,
If you are required to complete a Self Assessment tax return in the tax year you make the extra payments, you would declare your additional pension payments in the tax return, so that they can be factored into your tax liability calculation, where any tax overpaid can be refunded to you.
If you do not need to complete a tax return, then you would need to write to:
H.M. Revenue and Customs Pay As You Earn BX9 1AS,
To claim Higher Rate Personal Pension relief, including supporting evidence, such as a letter from the pension provider, confirming the payments.
Any tax overpaid will then be refunded to you.
Thank you. 
Posted Fri, 08 Mar 2024 12:30:34 GMT by HMRC Admin 20 Response
Hi eme,
Yes it is £48,000 in order to take into account the tax relief.
Thank you.
Posted Thu, 21 Mar 2024 12:13:26 GMT by HMRC Admin 20 Response
Hi Davemoo,
You do not show this in the actual tax return. you only declare any excess that you need to pay - HS345 Pension savings — tax charges (2023)
Thank you.
Posted Tue, 07 Jan 2025 18:21:09 GMT by Sally Caswell
Hello, I have a similar question, I’d be grateful for clarification. I aim to keep my taxable income just under £100k in order to avoid losing my personal allowance ( the so called 60% tax trap ) . My work is sessional , so I can fine tune how much I work & earn in order to achieve this. I have a private pension that I top up if I do exceed the threshold ( £100k). Looking at tax calculations from previous years, I understand that if I pay £20,000 net into my private pension, then my 20% tax threshold is raised by £25,000( 20,000*100/80) to £50,270+ 25000 , therefore I am only charged 20% tax instead of 40% ( I.e. I am reclaiming the extra 20% tax relief due ) . What I’m not clear on is how this affects my overall tax calculation if my income exceeds the £100k threshold. What exactly happens to the PA ? Eg : If my income is £125,000 I will forfeit £5000 of my PA . So I decide to pay £20,000 into my personal pension , which is grossed up to £25,000 on the self assessment. Have I now regained my PA ? How much am I paying at 0% , 20% and 40%. ? In other words, if I earn £125,000 ( after deductible expenses etc) , exactly how much must I pay into my personal pension in order to avoid losing any of my PA ? Hope that makes sense. Thanks in advance for a reply.
Posted Wed, 22 Jan 2025 12:49:38 GMT by HMRC Admin 8 Response
Hi,
If your income is over £100k, your personal allowances are still reduced irrespective of the amount you pay to your pension,
it only reduces the income you pay at higher rate.
Thankyou.
Posted Thu, 23 Jan 2025 08:41:54 GMT by Pension63
If I receive a pension and are contributing to a salary sacrifice scheme and my total earnings are over the 40% threshold. Can I get additional tax relief on my contributions to the salary sacrifice scheme? Is this something I need to advise HMRC of independently from my employer, as my employer will only see my tax code?
Posted Tue, 11 Feb 2025 08:15:19 GMT by HMRC Admin 17 Response

Hi ,
 
Please refer to the following Guidance and Links :

Tax on your private pension contributions   .

Thank you .

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