CLAIMING HIGHER RATE TAX RELIEF ON WORKPLACE PENSION CONTRIBUTIONS
Working out whether you can claim higher rate tax relief (through Self Assessment) on workplace pension contributions
1. A Net pay arrangement is when your employer deducts your contributions from your pay before they calculate the tax due from your pay. - Correct amount of tax relief claimed.
DON’T CLAIM VIA SELF ASSESSMENT.
2. Your employer takes your contribution from your net pay (after tax has been deducted but before they pay you) and pays this to your pension provider on your behalf.
If you’re a higher rate taxpayer, you can claim further tax relief (at your higher rate, less the basic rate already claimed on your behalf) from HMRC.
- YES CLAIM VIA SELF ASSESSMENT.
3. If you're paying pension contributions through a ‘salary sacrifice’ arrangement agreed with your employer, this is treated as an employer contribution, with the same effect for you as receiving tax relief but also with a saving on NI contributions.
- DON’T CLAIM VIA SELF ASSESSMENT.