I was just checking a PAYE tax cert for 2005 and notice that my tax relief for a voluntary contribution to my pension was only calculated at the lower rate even though most of my income tax was paid at the higher rate. Is this correct?
My understanding was that tax relief on additional contributions was given at the higher rate of tax ie 42% as opposed to 20% if tax is paid at the higher rate.
My understanding was that tax relief on additional contributions was given at the higher rate of tax ie 42% as opposed to 20% if tax is paid at the higher rate.