Sidharth

Hi, I have gross annual income of £120000 and I have given the correct amount of tax during the year through PAYE. I also contributed £5100 into my SIPP during the year, which I believe relates to £6375 with government contribution so I completed a self assessment form and it says that I need to give £300~ more tax. I thought the £6375 would be deducted from 120000 but apparently it's added to the allowed allowance in the 20% pay bracket and thus reducing the amount in the 40% bracket and all in all it has meant I'm supposed to give more tax. Seems wrong that I'm supposed to give more tax if I've put in money in Pension!