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Posted Wed, 24 Jan 2024 20:50:24 GMT by
Hi, First time self-assessment so appreciate the guidance. For the tax year 22-23, I have paid to my workplace pension £61K. (both mine and my employers contributions). This is £21k over the annual allowance of £40k As a 40% tax payer, I calculated I need to pay the tax on the overpayment of £21k. (£21000*0.4 = £8400). I will ask my pension administrator to pay this tax charge using scheme pays method. However, I have also paid into a private pension £1200. (payment made after tax deducted). This received 'relief at source' of 20%, meaning the contribution into the private pension was actually £1500 (£1200 + £300). I have therefore actually paid into pension a total of £61k + £1500 = £62,500, which I could use to adjust the total payment above the annual allowance. However, the £1200 payment into private pension was made after tax deducted, so I believe I only need to state I have paid into the pension £61k + £300 (20% tax relief that needs to be repaid). Is this correct? If so, I will add the £300 tax relief on top of the £8400 value I will ask my pension administrator to pay via scheme pays. Thanks
Posted Mon, 29 Jan 2024 11:35:34 GMT by HMRC Admin 32

The pension tax charge takes into account all pension payments made in the year and any tax relief applied therefore the £1500 should be added.

Thank you.

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