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Posted Mon, 16 Dec 2024 11:14:21 GMT by MP554
My employer does not count bonus payments as pensionable earnings, so no additional pension contributions are made on bonus months compared to the contribution I would receive on a base pay month by my employer. My workplace pension contribution also stays the same (3% of my base pay) each month regardless of whether it is bonus month or not. If when I receive this bonus, my gross earnings takes me over the £50,270 limit, am I entitled to additional tax relief (an extra 20%) for my pension contributions? Or is it only if my base pay (excluding the bonus) is greater than £50,270 that I would need to create a self assessment tax return form and claim back the extra 20%?
Posted Mon, 23 Dec 2024 15:19:47 GMT by HMRC Admin 10 Response
Hi
As your bonus payments will be included in your overall taxable pay, you are entitled to claim the higher rate tax relief on the pension contributions that you make in the year.

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