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Posted Sun, 21 Jan 2024 19:31:31 GMT by DorotheeP
Hello When claiming back higher rate tax relief on pension contributions for self assessment do I put in the net contributions or the gross contributions ( total including tax relief at basic rate ) ? Example I have income of 60,000 self employed profit I added 10,000 to my pension and it was topped up by 2500 ( basic relief ) Do I add 10,000 to work out the tax relief or 12,500 ? Do I get the higher rate tax relief on the 10,000 as this is the higher rate amount ? Thankyou
Posted Wed, 24 Jan 2024 17:17:28 GMT by HMRC Admin 20
Hi DorotheeP,
It is your payment plus the basic rate tax relief already applied. in your example it would be £12500.
Thank you.
Posted Sat, 27 Jan 2024 20:56:20 GMT by DorotheeP
Thankyou does this mean I get additional tax relief on £9730 ( 60,000 minus 50,270 ) ? So of the 12,500 there is additional relief on 9730 How does this additional tax relief work ? Does it come off my bill or is refunded ?
Posted Wed, 31 Jan 2024 09:34:43 GMT by HMRC Admin 19

The additional relief would reduce your tax bill for 2022 to 2023. A refund would be due if you have already paid too much by way of your payments on account.

Thank you.
Posted Wed, 31 Jan 2024 09:45:12 GMT by DorotheeP
Hello Ok thank you is the additional relief on the amount I have profit over £50,270 so in this case additional relief on £9730 ? Thankyou
Posted Fri, 02 Feb 2024 09:14:52 GMT by HMRC Admin 2

Yes. it is applied to anything over the basic rate band.

Thank you.
Posted Sat, 10 Feb 2024 22:49:31 GMT by DorotheeP
Hi Ok thank you, regarding income for tax relief ? does this mean just the business profit or does it also include any income from interest over the personal savings allowance ? added onto the business profit ? thank you
Posted Wed, 14 Feb 2024 11:43:26 GMT by HMRC Admin 25
Hi DorotheeP,
As the pension contribution extends the basic rate band, this will have an effect on all your income whether it be the profit or interest.
Thank you. 


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