Hallo, I have a basic pension question that I’m not sure about. Can anyone tell me roughly how much tax relief I’d get based on the following:
- I currently pay 3% into my employer pension, employer pays 5%. This works out as £190 pm from me and about £100 a month from my employer
- i also pay £100 a month into a separate private pension, and receive £25 tax relief on this.
I earn £54k pa so I only just fall into the higher tax bracket.
My question is, if I start paying an extra £200 into the private pension - do I get £50 a month tax relief (ie 25% on £200) or will it be £40 ie 20%.
I think I have to claim back any additional tax relief myself, is that right, as the private pension won’t do this for me?
Thanks for any advice - I’m not good at this stuff!