Amy R

Im honestly struggling to understand this and hoping someone can explain. I have a full time job which I Salary sacrifice into a work place pension that leaves me in the 40% tax bracket. I also made £15,910 with a side hustle. The tax is fine for the PAYE job i believe. Its all paid, i have my P60. The £15910 from the side hustle, i was told i can be tax efficient with it as i don't need the money. I should put all into a SIPP and I'll get 25% tax relief free automatically + if i do a self assessment I can get 20% on top. I will owe no tax. The money is untaxed though. So really i shouldn't be getting the 25% top up and i shouldn't be getting 20% more on top with a self assessment right? I asked on the reddit and got an other version. If I made £15910 with a side hustle, I shouldn't get any tax relief and I have to pay NI if i put into a sipp. So i should put my side hustle, minus 20% into a sipp. Get 25% tax relief automatically and my sipp will now have £15910. With the 20% i have in cash, i pay that to hmrc as tax owed as they gave me the relief at source automatically within the sipp. Then the only tax left to pay is NI. So with this information i attemtped to fill in my self assessment and got this. None of the above adds up for me. Heres a screenshot it, The bit in blue is math and logics. Green is me understanding the section. Red is my confusion. Wonder if anyone can help? I feel i might be under paying tax with the assessment i linked above

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Joe im in the exact same boat! I cant find anything about it online. Just seen your post which is exactly the same issue as me. It doesn't make sense to come out 140% as the money was never taxed when given to us. Ideally i can put into a sipp without relief as the income was never taxed. I did my self assessment to the end but not submitted and now i have a massive tax bill at the last page. I actually cant work out the maths and posted my own thread to but it needs to be verified. I think what happens is you put you freelance into Sipp and get relief automatically. You then do you tax return and they do the maths. I think you have to pay back the 20% relief amount that was given to you + NI class 2 and 4. This doesn't seem right as you are essentially gaining the 20% relief amount extra for old you and losing the 20% amount for young you.

Hi wondering if anyone can shed some light on my confusion as I’m attempting this for the first time. I’ve got to the end of my tax assessment 23/24 and I’m at the tax calculation part and I’m a bit confused. - Basically I’m a 40% tax payer in full time work. I made 58772 last year - I do freelance on the side and made 15910 - I put all my freelance profit into my sipp, 15910 where I got 20% relief at source So I had to do a tax assessment to claim additional tax relief on the 15910. I’ve got to the end of my tax assessment and it says - I owe £3690.79 2023-24 balancing payment - 1st payment on account for 2024-25 due 31s Jan 2025 is 1800.50 - total to be added to self assessment account due by 31 January 2025 is £5491.20 Second payment on account for 2024-25 will be due by 31 July 2025 That’s a lot of tax I wasn’t expecting? I’ve already been taxed on my full time job. So was expecting no tax there Then all the profit I made from freelance I put into a sipp, so there so by no tax there too? Can anyone help?