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I am competing a SA for the first time and struggling with declaring pension information. I think I have done properly but has an unexpected tax calculation resulting in an overpayment by me. There is nothing else complicated on tax return other than £6,250 of dividend income. I have a defined benefit work scheme where my employer pays my pension, and in 2023-24 they made no contributions to it. I did pay in £17,000 in AVC contributions but I understand I do not include this amount these are taken from pay before tax calculation - so no relief is due, I also opened a SIPP in 2023-24 where I contributed £33,000 and my provider claimed £8,250 20% tax relief. As per SA guidance I added £41,250 in box 1. In the tax calculation is states "Your pension payments of £41,250.00 have increased your Scottish basic rate limit.". This means a pay less tax on income although I already received £8,250 from my SIPP provider. This has resulted in a stated overpayment of nearly £5000. Is this correct how SIPP contributions raise the basic rate tax element?

Thank you.

Thanks, then how do I report an issue? I keyed the amounts in first post and get figures in second. I have repeated and get the same results.

Thanks, I used the calculator and keyed same data as above. The calculation for current year 2024/25 is incorrect unless I am missing something? - 6 April 2024 to 5 April 2025 Your result Amount Available annual allowance £106,785 Available money purchase annual allowance £0 Pension savings £67,925 Amount on which tax is due £0 Unused annual allowance £30,760 -- £106,785 - £67,925 = £38,860 (from my manual calculation) NOT £30,760 as above?

I am in a non-contributory final salary pension scheme although I have paid AVC for several years. In 2023 I opened a SIPP account with Interactive Investor. I just wanted to check if I am correct with my pension allowance carry-forward calculation. The C/F figures I used are from my employer pension scheme plus contributions I made to my SIPP in 2023/24 and to date for 2024/25. Pensions C/F Carry-Forward Cumulative HBOS C/F 2021-22 16,024.75 16,024.75 HBOS C/F 2022-23 20,684.03 36,708.78 HBOS C/F 2023-24 43,074.12 79,782.90 Less ii SIPP 2023-24 -33,000.00 46,782.90 Pension C/F 2024-25 43,074.12 Est. 89,857.02 Less ii SIPP 2024-25 -51,000.00 38,857.02 (Unused C/F) Thanks.

Thanks. I am undecided if I will complete a tax return rather write to HMRC, hence why I asked for confirmation on the calculation. Can you confirm on calculation noted above please?

Hi HMRC - please ignore above. I did some checking online and now understand the amount of higher tax relief depends on how much was paid above £50,270. I checked my P60 and it states £62,544.42 of which £15,403.58 was paid in tax. The gross pay is lesser than I expected but this will be due to paid AVCs into non-contributory workplace pension of £1,410 per month, and £150 per month for share match scheme. I think these deductions are before tax. For the 2023/24 tax relief is the calculation £62,544 - £50,270 = £12,274 x 22% relief = £2,700. Can you please confirm on above and correct as required. Thank you,

I live in Scotland and I am higher rate tax payer (42%). Can you advise do I claim an additional 22% via self-assessment and what would be the calculation based on the £33,000 in 2023/2024? Is it as per initial 20% calculation as above (£33000/78*100 = £42307). £42307 - £33000 = £9307. Or something else?

Wow! I'm glad to be corrected. A good result. Thanks.

I opened a SIPP with ii and have deposited £33,000. I expected them to add £6,600 tax relief but they added £8,250. I have asked them several times and the reply with this same response each time. Everywhere else I have checked (plus online calculators) works out tax as 20% of my contribution. Here is their calculation: “You made a £20,000 net contribution by debit card on the 2nd April and a £13,000 net contribution by debit card on the 5th April. This resulted in a tax relief of £8,250 received for the contribution made in the tax year 23/24. Although the tax relief of £8,250 was received and applied to your account on the 22nd May 2024 this amount relates to the tax year 23/24 as they are linked to the original net contribution that was made. Thus, I can confirm that with ii you have made a net contribution of £33,000 and received £8,250 tax relief for the tax year 23/24” Is this correct?