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Posted Mon, 16 Dec 2024 11:51:55 GMT by Anthony
I make a personal pension contribution with my employer paid by salary sacrifice. This is saving income tax on my payslip at Basic Rate. I also have income from property rental and self employment that takes me over to be a Higher Rate tax payer. Am I not able to claim the additional 20% tax relief as my income all together is in the Higher Rate bracket but I am only getting tax relief on my salary sacrifice at Basic Rate? If so, would I just put this on my Self Assessment like a gross pension payment? Thanks
Posted Mon, 23 Dec 2024 15:23:09 GMT by HMRC Admin 10 Response
Hi
Please declare your gross pension payments in box 1 of page TR4 in your self assessment tax return or online equivalent.  This will extend your basic rate band to reduce the amount of income taxed at 40%, giving your 20% tax relief.
Posted Mon, 23 Dec 2024 18:43:04 GMT by BellaBoo
Hi not HMRC but you would never include salary sacrifice contributions on a self assessment. They count as employer contributions so you cannot claim relief on them. If you earn £45,000 and sacrifice £10,000 then your P60 would show £35,000 income. This is why you cannot claim relief on them. You have already been given full relief via your employer.

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