Tax relief

BB brother · Post by **BB brother** » 19 Jan 2017, 09:37

Hello all !
Is there any tax relif available in regards of our contributions into the pension.
Oh.. and do we still have one ? XD

Many thanks

Post by **RobertT** » 19 Jan 2017, 12:43

Yes! The DC pension will attract tax relief and NI relief(PSE) in the same way as the current pension does.

Personally I expect my 6% contribution to equate to a gross of about £25 per week, but factoring in tax relief & PSE, it's effectively only going to cost me about £17. Plus there's another £41(10%) going into the pot off RM.

BB brother · Post by **BB brother** » 19 Jan 2017, 15:06

Cheers Robert !
Is this already automatically applied to my current contributions or do I need to grab a form ?
Ive never known how this has worked since day one to be honest.

Post by **RobertT** » 19 Jan 2017, 15:10

We get tax relief at source. So for every £1.00 gross we pay into our pension, 20p gets taken off our income tax payment.

With PSE it's 12p being taken off our NI payment for each £1.00 going into pensions.

So in effect each £1.00 only actually costs us 68p, with the other 32p being paid by the government.

BB brother · Post by **BB brother** » 19 Jan 2017, 15:32

Oh Right !
Cheers Bud.