Tax relief for pension contribution

Hi, Appreciate it if I can get the below clarified, please. In the self assessment returns form there is a section for getting tax relief for pension contribution. It has the below points. 1. Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider (called ‘relief at source’). Enter the payments and basic rate tax. 2. Payments to a retirement annuity contract where basic rate tax relief will not be claimed by your provider. 3. Payments to your employer’s scheme which were not deducted from your pay before tax. 4. Payments to an overseas pension scheme, which is not UK-registered, which are eligible for tax relief and were not deducted from your pay before tax. I am a high-rate taxpayer (40%). I contribute to two pension schemes. One is into my personal pension and the other is my employer’s pension scheme. In the self assessment tax returns, I understand that I need to enter the personal pension gross amount in the box 1 (point 1 above). I also contribute to my employer’s pension scheme, but the pension is deducted from the salary after calculating tax. In this case, the pension provider claims back 20% (tax relief) and add it to the pension pot. For example, let us assume that the monthly salary is £5000, and the pension contribution is £200. In this case, the employer calculates the tax based on the total monthly salary £5000 and the pension contribution is taken from the salary after tax. I.e., £200 is taken from £5000 – tax. In the pension pot, I have £200 plus the tax relief (20%) claimed by the pension provider (£200+£50). Can you please clarify whether I should enter the 2022-23 pension contribution into the employer's pension scheme in box 3 (point 3 above) or should I add it to the personal pension amount and put it in box 1 (point 1)? Thanks Vinod

Hi, I would appreciate it if you could provide clarification on this. Thank you in advance for your help. Regards Vinod

Hi,

If the pension contributions are taken from your net income after tax calculated then you would enter the grossed up figure in the employers pension scheme box. 

Thank you.

I've seen mixed messages on these forums so would like clarification, I have a workplace pension that is relief at source, so I pay in x and the pension provider claim the additional 20%. HMRC phone line told me to put this in box 1, so "Payments to registered pension schemes where basic rate tax relief will be claimed by your pension provider (called ‘relief at source’). Enter the payments and basic rate tax." But this thread makes it sound like it goes to box 3, which I was told on the phone, does not take the existing 20% into account so would result in getting too much back. Can you please confirm if a workplace relief at source pension should be Box 1 or Box 3 Thank you!

My understanding is that if it's relief at source, it's always box 1. I believe box 3 is for things like the example at https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044240

Hi Edward,
It should be box 1, as your employer has already provided 20% relief at source.
Thank you.