Personal Pension relief on tax code.

Hi there, I contribute each year with £3000 to my SIPP, and claim relief via SA each year. As a 40% tax payer I get (25% relief) £750 net in my SIPP account and (20% relief) £600 in my SA payment. (I chose to pay in full on the SA calculation, without paying via tax code changes) Every year I get a letter that my personal allowance and PAYE tax code have changed since I have £1500 of Personal Pension relief. Every year I call HMRC to put back my tax code as standard 1257L ... am I doing something wrong or missing out or other reliefs ? Should those £1500 stay there ? They told me on the phone that those are for the next year in case I would contribute again, but it doesn't make sense to me why the number is £1500 in the first place. Thoughts ?

Hi
Your tax code is updated based on the information on the tax return. As you are making the payments to your pension on a regular basis, they should stay in your tax code and it would then only be any increase/decrease in payments that would affect your tax bill.

Sorry I don't understand. I'm claiming the tax relief via SA every year. Am I missing out on further relief via tax code ?

Hi,

No, as the tax return confirms the final figures for each year whereas your code is an estimate.

Thank you.