Salary sacrifice contributions for higher & additional rate tax payers

Being a higher rate tax payer may have implications when it comes to paying into a SIPP, depending on how these contributions are made.

Salary sacrifice for pension calculations are calculated and deducted at source by Nasa Umbrella. Under a salary sacrifice agreement, contributions are paid by salary exchange by your employer (in this case Nasa Umbrella), and therefore no income tax is deducted, as the salary has been given up in this scenario. This means that you get tax relief immediately and therefore do not have to claim it back through your tax return. 

If you are a higher or additional rate-tax payer and you are making your own contributions to a personal pension, you would pay your own contributions net of basic rate tax. You would then claim any higher and additional tax relief through your self-assessment tax return.