Pension Query

If I pay into a private pension scheme after I have paid tax and usual pension contributions (defined benefits scheme) how is the tax already paid accounted for?

If it's a private pension, then for every 80 quid you put into the pension they gross it up by adding the tax back on so what actually goes into your pension pot is in fact a £100.

If you are a 40% tax payer then you can contact HMRC to receive the other 20% relief you are entitled to refunded.

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Originally Posted by Hot Shot Hamish.

If it's a private pension, then for every 80 quid you put into the pension they gross it up by adding the tax back on so what actually goes into your pension pot is in fact a £100.

If you are a 40% tax payer then you can contact HMRC to receive the other 20% relief you are entitled to refunded.

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Thanks Hamish. So the pension provider would automatically add the 20% into the pot then.
I'm assuming the other 20% could be accounted for through self assessment.

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Originally Posted by rs3100

Thanks Hamish. So the pension provider would automatically add the 20% into the pot then.
I'm assuming the other 20% could be accounted for through self assessment.

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Yes. If you are employed though there isn't always the need for self assessment as they will adjust your tax code accordingly.

Quote:

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Originally Posted by Hot Shot Hamish.

Yes. If you are employed though there isn't always the need for self assessment as they will adjust your tax code accordingly.

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I'm both employed and do SA.
Thanks for your help.