Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 26 Dec 2024 22:04:19 GMT by Will Hay
I've massively increased my salary sacrifice pension contributions for the final three months of the tax year. This will mean my taxable earnings will fall under the 40% threshold. As I'm sure I've paid too much tax, do I simply use the nett/gross method [gross sum dividend by 80 x 100] on tge oension section of a self-assessment return to make a claim for the tax overpayment? Thank you.
Posted Mon, 13 Jan 2025 15:35:11 GMT by HMRC Admin 8 Response
Hi,
You cannot claim relief on pension payments made under salary dsacrifice as these are classed as employers contributions.
Thankyou.
Posted Mon, 13 Jan 2025 17:49:06 GMT by maxb
If these were salary sacrifice contributions, then you do not gain relief by claiming them as pension contributions (because they are not contributions out of your earnings after tax). Instead you gain relief because you have reduced you earnings before tax via the salary sacrifice. If you are on a cumulative tax code for PAYE, you may already have received this relief via payroll. In any case, you should just need to fill in the Employment section of the tax return using the figures from your P60 - that will cover reporting your earnings (as reduced by salary sacrifice), and the tax deducted from them, triggering a credit if too much was deducted.

You must be signed in to post in this forum.