Ash
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Claiming additional 20% tax relief on workplace pension contributions
Hi, I have a query regarding tax relief on my workplace pension contributions. 1. I earned ~59000 GBP in the past financial year, i.e., 6 April 2023 - 5 April 2024. So, I paid 40% tax on ~9000 GBP. 2. My employer enrolled me into NEST workplace pension scheme (https://www.nestpensions.org.uk/). Out of ~59000 GBP, I paid 1411 GBP as my contribution towards the pension. My employer also paid their part in my pension pot. I paid 40% tax on 1411 GBP pension contribution as it is less than 9000 GBP. 3. I found that I can claim the tax I paid on the pension contributions as mentioned here: https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief 4. When I checked NEST pension pot summary, I found that I got 20% tax relief (353 GBP) from HMRC to my pension pot directly. This appears to follow the clause mentioned at above referenced site: "your pension provider claims tax relief from the government at the basic 20% rate and adds it to your pension pot (‘relief at source’)" 5. Now, as per the above reference, I am entitled to additional 20% tax rebate (as I paid 40% total tax) based on the following clause: "In some cases, you need to claim tax relief on pension contributions yourself. You’ll need to make a claim if: you pay Income Tax at a rate above 20% and your pension provider claims the first 20% for you (relief at source)" 6. Similarly, I found a clause from another reference (https://www.gov.uk/workplace-pensions/managing-your-pension) which discusses "Workplace pensions". I satisfy the following clause and thus believe that I am eligible for additional 20% tax relief. ‘Relief at source’ Your employer takes your pension contribution after taking tax and National Insurance from your pay. However much you earn, your pension provider then adds tax relief to your pension pot at the basic tax rate. With ‘relief at source’, the amount you see on your payslip is only your contributions, not the tax relief. You may be able to claim money back if: you pay higher or additional rate Income Tax 7. I found a clause "You can also call or write to HMRC to claim if you pay Income Tax at 40%.". But when I called HMRC, they told me that tax relief is only valid for "private pensions" and not for "workplace pensions given by employers". This confused me because above references clearly also mention "workplace pensions" for the tax relief. 8. Now, my questions are the following: 8.1 Please confirm if above analysis is correct. 8.2 Am I entitled to get additional 20% tax relief, i.e., 353 GBP? 8.3 If yes, how can I claim this? Thank you!