Higher Tax Level

[April08]

Could someone clarify the situation regarding personal pension contributions if you are a higher tax payer.

My pay this year will go over the threshold because of overtime and bonuses, but next year I may be well below the higher tax limit.

Do I have to notify my pension provider that I am a higher tax payer this year in order to get the extra contribution?

[buildersmate]

Unless the rules of the game have changed, you get the standard rate of tax reduction automatically from the pension provider, but the higher rate relief (the difference in tax between the std and the 40% rate) is obtained by declaring it on your tax return to HMRC.