Didn get a clear answer internally about this so thought I would consult the oracle.
My company matches my Stakeholder pension contributions to a max of 5%. I pay an extra 5% which means I pay a total of 10% per month of my gross.
I get tax relief on my contribution of 20% but am a higher rate tax payer.
Should I get relief at 40% and if so do I need to fill in a tax form? I am paye now so havent filled one in for a few years.
You should get tax relief at your marginal rate of 40%. If you are PAYE, this should be adjusted on your tax coding. Call your tax office.
The relief at 20% will automatically be added to your Stakeholder Pension. To get the additional 20% (on those earnings in the higher margin) will need to be claimed from HMRC. Complete a simplified tax return showing your total earnings (including any interest from bank accounts) and total pension contributions and you'll get a lovely cheque in the post.
Drop me a line if you need any help - website link in profile which has my contact details.
Does the money you pay into your pension come from your Gross or your Net salary. If it is the latter then you need to fill in a tax return to claim the additional relief, if the former then the money wasn't taxed so you don't have anything to claim and you need do nothing.
If this has been onging for a number of years you can still make a claim for overpaid tax.
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