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My question:- when paying into a pension you get tax relief

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Hi, I'm Tom, my question:- when paying into a pension you get tax relief on your contributions, When under Paye is the relief the same doing this as salary sacrifice vs personal pension? and is this the case under all tax bands, 20,40,60,45? thanks - -other question do I have to pay for this?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: only if there is a charge

Hi. My name is Tony. I'm looking at your question now and will post my answer or ask for more information here in a short while.

Nobody works on this site for free. Do you still want an answer?

Customer: replied 12 days ago.
I put that question on before being directed to this site, I have never used it before, does this advice come as part of the payment that I have already made?

It does.

I'll give you the different pension contribution scenarios:

 

1 If you make a contribution of £800 directly from your own bank into a pension, HMRC will add basic rate tax relief of £200 to it so there is £1,000 in your pension. If you are a higher rate taxpayer, you claim the additional tax relief by completing a tax return.

 

Ill give you the different pension contribution scenarios:

 

1 If you make a pension contribution of £800 directly from your own bank into a pension, HMRC will add basic rate tax relief of £200 to it so there is £1,000 in your pension. If you are a higher rate taxpayer, you claim the additional tax relief by completing a tax return.

 

2 If you make a pension contribution by deduction from your salary before the tax is calculated, you will get all the relief you are entitled to automatically. If you complete a tax return, your other income will be taxed appropriately as your P60 will show your pay as net of pension contributions.

 

3 Some employers only give basic rate tax relief for a payroll pension contribution so it may be necessary to complete a tax return to get any higher rate tax relief due.

 

4 A salary sacrifice pension contribution is not a personal contribution. It is an employer contribution and it is the employer who gets the tax relief. You will have sacrificed some salary in exchange for an employer contribution to your pension fund.

 

I hope this helps but let me know if you have any further questions.

Customer: replied 12 days ago.
great thanks for that - just to check one partifular scenario - I assume if salary was £110k and I paid 5k into a work pension and 5k into personal pension then you get the 60% tax relief on the whole 10k of contributions but that is made up of (a) 5k direct from source and (b) 5k (part though 20% added by HMRC and extra 40% on tax return)
thanks

That would be correct.

Customer: replied 12 days ago.
thank you very much *****

Thanks.

 

Would you mind rating my answer before you leave the site please.

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Thanks.