Sent Assessment return: Should Gross pensions amount include employer contribution?

[css_jay99]

Some employers will deduct the gross pension from your taxable pay and pay it as an employers contribution - if they do that, then you are getting full tax relief via your salary so you can't claim any more relief via self-assessment. It only goes on your self-assessment if it is deducted from net pay.

Nest is applying basic tax relief to my pension pot and from what you are saying suggests that Umbrella is deducting contributions from net pay. Curious to know how the pension provider knows whether or not to apply for the basic tax relief. Is that communicated to Nest by employer/umbrella company?

[Alchemy Accountancy]

Found the answer in the HMRC help text but last point highlighted is slightly misleading.I thought all contributions (via PAYE) are before tax



Example

Emma paid £700 into her pension scheme. She puts £875 in this box (£700 divided by 80 and multiplied by 100), which is her net payment plus the tax relief of £175 (£875 at 20%).

If you pay tax at a rate above the basic rate, 20%, you are entitled to further tax relief. It will be automatically calculated and the credit included in your tax calculation.

Do not include any amounts for:

• personal term assurance contributions
• your employer's own contributions
• contributions taken from your pay before it was taxed

Some employers will deduct the gross pension from your taxable pay and pay it as an employers contribution - if they do that, then you are getting full tax relief via your salary so you can't claim any more relief via self-assessment. It only goes on your self-assessment if it is deducted from net pay.

[css_jay99]

Found the answer in the HMRC help text but last point highlighted is slightly misleading.I thought all contributions (via PAYE) are before tax



Example

Emma paid £700 into her pension scheme. She puts £875 in this box (£700 divided by 80 and multiplied by 100), which is her net payment plus the tax relief of £175 (£875 at 20%).

If you pay tax at a rate above the basic rate, 20%, you are entitled to further tax relief. It will be automatically calculated and the credit included in your tax calculation.

Do not include any amounts for:

• personal term assurance contributions
• your employer's own contributions
• contributions taken from your pay before it was taxed

[css_jay99]

I have been enrolled into Nest due to now working inside IR35. The nest Annual statement shows amount contributed by me, umbrella co and basic tax relief claimed by nest.

When grossing pension up for self assessment do I need to add umbrella company contribution or its just my contribution + tax basic tax relief



Thanks