Redgiant Buckland

Hi, Struggling with my maths…grateful for any assistance. [oversimplified] I’m a higher rate tax payer and take home £6,000 of £10,000 because I pay 40% tax. I pay that £6,000 into my SIPP My SIPP provider automatically adds basic rate tax relief at 20% (£6,000 x 0.25 = £1,500) I claim back higher rate tax relief via my tax return ((£6,000 + £1,500) x0.25) = £1,875 £6,000 + £1,500 + £1,875 = £9,375? Where has the £625 gone? Sure I’m being thick. Thanks all for your help.

Quick calculation please. I want to bring my net adjusted income down to £50,000 to avoid the higher income child benefit charge (HICBC). How much do I need to contribute to a Self-Invested Personal Pension (SIPP), after tax from my current account, assuming my salary is £60,000? £8000: because £8000 plus basic rate tax relief claimed by my SIPP provider at 25% = £10,000 OR £6000: because £6000 plus basic rate tax relief claimed by my SIPP provider at 25% PLUS higher rate tax relief claimed via HMRC = £10,000 I realise this is oversimplified (the higher rate threshold isn’t exactly £50,000, ignores workplace pension etc etc) but the example serves to answer my question. Many thanks all!