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Posted Thu, 05 Sep 2024 14:12:22 GMT by Mark Whitehead
Hi, I've been paying substantial amounts into my company pension for a few years now (£25k-£40k) and have been given a tax code by HMRC of 2378L to reflect the amount I'm paying and save me from having to claim a large amount of higher rate tax relief at the end of each tax year. My aim every year is pay enough into my pension to bring me below the £50270 threshold for higher rate tax. My employer is switching to a salary sacrifice scheme in the next couple of months, and I will continue to pay similarly large amounts into my pension, but now without the need for an elevated tax code, or any higher rate relief reclaim, as all payments are paid gross to the pension provider. Can I make the necessary adjustments by simply reporting to HMRC via the PTA app that I am now paying £0 into my pension, and thus get my tax code to revert to the standard 1257L? If this is the case, how long would it typically take for the tax code change to take effect? It's not clear at the moment whether the new SS scheme will be in place by this month's payroll date, and I don't want to create confusion by reporting the change in circumstances to HMRC too early. Any advice would be appreciated KN
Posted Tue, 17 Sep 2024 10:35:53 GMT by HMRC Admin 17 Response

Hi ,
 
As soon as you know the change to salary sacrifice has occured, you can update your online account.

However, you would need to reduce it to the amount actually paid for this tax year, as reducing to £0
would not give any relief given on amounts you have actually paid.

Then for the next tax year, you would have £0.

Thank you .

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