Pension Tax Relief on a Tax Code
I'm trying to understand how pension tax relief appear on my client's tax code as the numbers bear no relation to the amounts she has contributed.
She is a higher rate taxpayer and contributes to a PPP (paid net) and an RAC (paid gross)
She has a personal allowance of £12,570
Payment to RAC - £1,236
Personal Pension Relief - £1,002
Total tax free amount £14,808 Tax Code 1480L
- Should the RAC figure be the total gross amount she contributed?
- Personal pension relief - is this 20% of the gross amount she contributed?
Any help would be much appreciated.