taxes or pensions??

[mutantpoodle]

unsure which board to post..so fingers crossed no one gets upset

My son is a 40% taxpayer
he just received a large bonus and has put it all into his company pension scheme
paid directly by his employer
so the bonus shows as a full payment into his pension balance
we are aware and within the limits including carry back allowance

Am I correct in thinking that he doesnt need to declare/tell HMRC anything as all bonus went to pension
so no tax deducted
no tax to reclaim etc etc

I find the pension/tax related pages confusing so hope someone with clear head can confirm...or set me straigt on this

many thanks in anticipation

[fca2019]

Tax should have been deducted from his bonus, as bonuses are taxable in the same way as basic pay.

If he paid in a employee contribution to his pension scheme, the pension provider would have added 20% tax relief to this contribution.

He doesn't need to call HMRC unless he thinks he has breached the rules,

However he may be able to claim higher rate tax relief by phoning HMRC and claiming on his tax code (or through a self assessment tax return if he needs to complete one).

Note the amount disclosed as personal pension contributions is the gross contributions (employee contributions plus basic tax relief given). This doesn't include employer contributions.

That's my take but I'd be interested to hear any experts in this area confirm if the above understanding is right or not.

[swill453]

Tax should have been deducted from his bonus, as bonuses are taxable in the same way as basic pay.

But not if it's put into a pension.

If he paid in a employee contribution to his pension scheme, the pension provider would have added 20% tax relief to this contribution.

It's an employer contribution, not an employee one.

However he may be able to claim higher rate tax relief by phoning HMRC and claiming on his tax code (or through a self assessment tax return if he needs to complete one).

If no tax taken off then no relief to claim.

I think the OP is correct, nothing to do.

Scott.

[fca2019]

ok think I agree with Scott if its an employer contribution, ignore my post.

[Shaker]

unsure which board to post..so fingers crossed no one gets upset

My son is a 40% taxpayer
he just received a large bonus and has put it all into his company pension scheme
paid directly by his employer
so the bonus shows as a full payment into his pension balance
we are aware and within the limits including carry back allowance

Am I correct in thinking that he doesnt need to declare/tell HMRC anything as all bonus went to pension
so no tax deducted
no tax to reclaim etc etc

Your son has no reporting requirements on that, providing its within annual allowance/carry forward rules. So rest easy!