PAYE adjustment for personal pension relief does not match my contributionsHi, I just received a new PAYE coding notice, I made some lump sum contributions to my personal pension last year which HMRC has helpfully added to this years PAYE code (so that I can obtain the higher rate relief), even though I might not have the intention of making any lump sum payments this year. I am trying to adjust the figure on the personal tax section of the web site, but before doing so I am a little confused about the amount HMRC has added to my coding notice. I paid a total sum of £8,500 (gross) last year into my personal pension but HMRC has added £4,250 personal pension relief to my PAYE code - why didn't HMRC add the full amount of £8,500 to my PAYE code? Are trying to "guess" how much I will pay this year? I note that £4,250 is exactly half of £8,500, but I don't understand where this 50% figure comes from? Can someone elaborate how HMRC arrived at this figure?
RE: Claiming basic 20% Tax Relief on Personal PensionIt may simply be that they are waiting for the rebate from HMRC before adding it to your pension, you need to allow 6 weeks for it to appear. If it's been longer than 6 weeks then you should get in touch with your provider. Some providers (such as Standard Life) will "front load" the tax relief and add it at the same time as your net payment, others (such as ii) don't.