Workplace pensions

[mikesmotor]

can anybody advise me as I seem to have got a lot of contradictory info here. I would like to know if the contribution an employee pays out of his/her wages/salary towards their workplace pension is in fact taxable through the normal p.a.y.e. system. Any help would be appreciated.

[citizenB]

https://www.gov.uk/workplace-pensions

 

https://www.gov.uk/workplacepensions

 

The above are two different links - but both gov.uk

 

I think all you need to know you will find in those.

[caro]

You don't pay tax on your contributions but it's taxable when you draw it out.

[Shelley181146]

The contributions you have deducted from your salary reduce the amount of Tax and N.I you pay each week/month.

 

When the time comes to be eligible to receive payment of your company pension you will have the choice of how it is paid to you.

 

Usually: a large lump sum which is NOT taxable and then smaller monthly payments which will be taxable (or)

A smaller lump sum again NOT taxable and higher monthly payments, again which are taxable.

 

The rate of tax deducted from your pension when this becomes payable depends on other income and taxable allowances you are entitled to at that time.

 

I.E: If you continue to work for any company AND are in receipt of your pension then you will most probably be paying Basic Rate (BR) tax = 20% from your pension contributions because your taxable allowances will go towards your job.

 

Hope this helps

[mikesmotor]

I am aware of all of this but the issue here is that my wife is paying into a workplace pension but the amount of tax she is paying is being calculated on her complete salary including her contribution. I can't make her understand this and I get my head bitten off if I mention it. Is there any way of getting her employer to correct this matter without causing to much mayhem!

[blondebubbles]

Could she claim tax relief?

 

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

[caro]

Would she check her p60 with hmrc?