Ciaran

iTrader: (16)

I have a company pension.
I pay 8.2% as does my employer.

My employers contribution goes straight into my pension pot
My Contribution how ever gets taxed.

Should my contribution be getting taxed?

I am in the higher tax band if this makes any difference?

Looking at my pension online. It shows my employers contribution, then my contribution and it also has a column for tax relief.

My column shows less than my employers contribution by exactly the amount it mentions in the tax relief column?

Getting a pension statement for the last 3 years sent through and going to contact HMRC.

speedking

You don't pay tax on pension contributions, because you pay tax on the pension when you receive it. If you earn at the higher rate and receive at the lower rate then you will make a small benefit eventually.

The horse's mouth.

LEO-RS

Does your pension scheme have a life insurance part?

I pay 8% as does my employer, however, only 15% goes into the pot with the 1% being used for the life insurance part of my pension. (3.5x annual salary payout tax free to wife, increased longterm sickness benefits etc)

You shouldn't be getting taxed. Seems bizarre.

urban

iTrader: (1)

OK, technically you don't pay tax I suppose.
But in reality, what happens is you do pay the tax and your pension provider claims back the basic rate of tax for you.

If you're a 40% man, then its up to you to claim the difference between basic and higher rate back from the tax man.

Ciaran

iTrader: (16)

No life insurance included.

HMRC getting a phone call today

Coffin Dodger

This ^

First few times I did it, once I'd got into the 40% bracket, I got a nice cheque from the tax man for £1000 - £1500 at the end of the year. Once they'd cottoned on to the fact that I was claiming relief on my penison contributions year on year they then modified my tax code accordingly so just ended up get a little bit more in my pay cheque each month to compensate.

You may need to do a tax return but try writing to them first explaining why you think you are paying too much tax.

Ciaran

iTrader: (16)

Cheers folks.

As the "horses month" above says I'm required to claim it back.