Exceeding pension contributions - self employed

For the last 4 years my wife (who is self employed) has contributed the equivalent of her income to a private pension. For example she estimated she would have profits of £6,000 for 2022/23 and contributed £6,000 and automatically received £1,500 tax relief added to that. I now believe she should have contributed £4,800 and received £1,200 tax relief. Is that correct? The advice I have read around contributions is complicated so I am not sure if other factors affect the amount she can contribute. HMRC know how much she earns each year from her tax return and knows how much tax relief she has received for her private pension. Can I assume that we would hear from you if any tax relief needed repaying? If not then what are my next steps?

Hi,

You can see guidance here:

Tax on your private pension contributions

If she has in fact had too much relief, she will need to write in with details to the following address:

HMRC,
PAYE & Self Assessment.
BX9 1AS

Thank you.

Thank you for your reply, the advice in your link seems to have clarified this - "You can get tax relief on private pension contributions worth up to 100% of your annual earnings." £6,000 was 100% of her earnings and she got tax relief at 20% on this from the pension provider. So if I am interpreting this correctly then she has not received too much relief. Can you confirm my understanding is correct please? Many thanks

Hi rogerroger

For earnings of £6000, the pension contribution should only have been £4800 as the tax relief would then bring that up to the 6k. By paying 6k, this gives a gross contribtion of £7500 so too much relief has been applied.

Thank you