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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3938
Experience:  FCCA FCMA CGMA ACIS
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Dear Sirs I have a question around my individual tax return

Customer Question

Dear Sirs
I have a question around my individual tax return for this year. I participate in a private pension fund where I contribute a monthly amount via my company. I currently deduct 8% of my salary, but get an up front tax relief on that amount.
My question is whether or not I can still deduct the amount I deducted from my pay check on my tax return in the section where I list pension contribution or not.
Many Thanks
Morten
Submitted: 9 months ago.
Category: Tax
Expert:  bigduckontax replied 9 months ago.

Hello, Morten, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The usual treatment of pension contributions is that one pays net and the other side recovers the tax from HMRC. Remember that currently the maximum that can be contributed, including any by your employer, may not exceed 40K in the current tax year.

The amount to be entered on your tax return is your personal contributions paid to the scheme, plus the basic rate tax relief.

I do hope that I have resolved your problem, Morten.

Customer: replied 9 months ago.
in my case I deduct 8% which comes out to = £732 per month - however my pay check will ONLY show a deduction of £586 due to the tax relief. I assume I can only document the £586 per month as this is what will show on my final documentation and therefore this is the amount I can claim per month - correct?
Expert:  bigduckontax replied 9 months ago.

No, you can claim your net contribution plus the basic rate of tax. It will all adjust out correctly in the end as HMRC will have your P60 filed. You are entitled to claim the amount I told you and the tax will be adjusted automatically.

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