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Posted Thu, 19 Dec 2024 08:00:53 GMT by Q Ontax
I would like to know if I am considered a tax payer in my circumstance please. I earn marginally above the personal tax free allowance threshold which means I would be liable for 20% Tax. I pay in to a company pension which is net pay deduction rather than relief at source or salary sacrifice. Would this deduction be considered as sending me back under the threshold meaning I am not tax payer. Or because it is net pay is it not considered as a gross deduction? The reason I ask is that I also put additional pension contributions in to another pension account which is relief at source. I am aware that non tax payers get relief on £2,880. I am trying to understand if I am considered as being a tax payer or a non tax payer so that I can work out of I am able to claim pension tax relief above £2,880. Thank you.
Posted Mon, 30 Dec 2024 12:07:16 GMT by HMRC Admin 32 Response
Hi,
Your tax free threshold for your pension payments is the lower of your annual earned income or £60,000. If you have no earned income, the maximum that can be paid tax free is £2880.  
Your pension provider would then claim 20% tax from HMRC to pay into your pension, allowing you to save £3600 to your pension tax free.  
Any amount you pay in above this threshold, results in a pension savings tax charge and must be declared in a Self Assessment tax return.
Thank you.
Posted Mon, 30 Dec 2024 13:09:44 GMT by Q Ontax
WarningThis post is currently being moderated and will be visible when it has been approved by a HMRC moderator.
Posted Mon, 30 Dec 2024 17:56:38 GMT by Q Ontax
WarningThis post is currently being moderated and will be visible when it has been approved by a HMRC moderator.

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