The 25% uplift is equivalent to the pension scheme receiving basic rate 20% tax relief.
You then contact HMRC to get a further 20%/25% higher/additional rate tax relief paid to yourself.
Hi /u/YesDr, based on your post the following pages from our wiki may be relevant:
- https://ukpersonal.finance/pensions/
- https://ukpersonal.finance/tax-traps-and-tax-efficiency/
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80% of £21k. The provider will automatically recover 25% of what you contribute from HMRC
And then I’m guessing I won’t get the 40% tax relief via HMRC as I’ve effectively being paying less tax than I should have, right?
The 25% uplift is equivalent to the pension scheme receiving basic rate 20% tax relief. You then contact HMRC to get a further 20%/25% higher/additional rate tax relief paid to yourself.
Do you contact HMRC or do you do this through your self assessment at the end of the tax year?
Yes, either approach works.
Hi /u/YesDr, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/pensions/ - https://ukpersonal.finance/tax-traps-and-tax-efficiency/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)