Relief at source

[Paulettamcgee]

I've started a new role where the pension arrangement is relief at source. As a higher rate tax payer it means I need to claim the additional 20% tax back from HMRC. Does anyone know if it's possible for HMRC to change your tax code in year to reduce the tax paid on a monthly basis. I put quite a high amount into my pension making it trickier to manage the tax cost on a month to month basis.

If you can do AVC’s via salary sacrifice then you will get full tax relief at source.

You can either claim the additional 20% via self assessment at the end of the tax year or you can contact HMRC and they will change your tax code in the current year so your personal allowance is increased - this way you pay less tax in real time. We sorted ours on live chat with HMRC, it was really easy.

No option for salary sacrifice unfortunately.

Great, thank you. I will contact HMRC.

Get the HMRC app, it’s a bit of a faff to get registered but once you have it it’s super easy to notify them of things like this, and they make the changes to your tax code really quickly

or use the Government Gateway online to advise them of your new pension contributions, it’s very straightforward

You can make changes on your own gov tax site

Never knew there was an app so 👍

I'm probably being particularly dense but I logged on and couldn't see a place to make this change. I'll try the app

This should help https://www.gov.uk/guidance/claim-tax-relief-on-your-private-pension-payments

Amazing, thank you!!