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Posted Fri, 31 May 2024 06:32:24 GMT by Waddleworkers
Hi, I am going to be contributing to a private pension in order to bring my taxable income below the £100,000 threshold, as I understand salary sacrifice does not work as it has already been subject to tax relief. When contributing to a private pension i understand additional is added by the government via tax relief. For example if I add £1,000 an additional £250 is added through tax relief from HMRC. If salary sacrifice is not appropriate due to tax relief, does that mean I also need to try and make sure any private pension contributions do not receive the additional sums through tax relief for it to count towards bringing my income below the £100,000 threshold? This seems to happen automatically by the pension providers so unsure how I would set up that arrangement. Thank you for your help. Any clarity on the difference between the salary sacrifice tax relief and private pension contribution tax relief would be appreciated. Thank you.
Posted Wed, 05 Jun 2024 08:03:02 GMT by HMRC Admin 25 Response
Hi Waddleworkers,
If you are making contributions to your pension from your net salary then you would include the basic rate relief claimed by the pension provider.
Thank you. 
Posted Fri, 07 Jun 2024 17:19:05 GMT by Waddleworkers
Thank you. Can you clarify what you mean by “include” please? Do you mean that it is ok that the £250 addition (in the £1,000 example) is ok to receive into the pension, and I can disregard it from any calculations on taxable income? Thank you.
Posted Thu, 13 Jun 2024 08:33:35 GMT by HMRC Admin 20 Response
Hi Waddleworkers,
Yes if paid from your net salary then the basic rate relief can be added. 
Thank you.

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