Pension Contributions for Musicians: What to Include on Your Self-Assessment Tax Return

If you’re a musician with a mix of employed and self-employed income, pension contributions can quickly become confusing - especially when it comes to your Self-Assessment tax return.

One of the most common questions we’re asked at Musicians Tax Advisor is:

Do I need to include pension contributions on my tax return, and if so, which ones?

The answer depends on how the pension contribution is being made. In this guide, we break it down clearly so you can complete this section of your tax return with confidence.

Pension Contributions Through Employment: Why the Method Matters

If you are employed by an orchestra, ensemble, music service, university, or arts organisation, your employer may already be paying pension contributions on your behalf.

Whether or not these contributions should appear on your Self-Assessment tax return depends on how your employer deducts them. There are three main methods.

1. Salary Sacrifice Pension Contributions

Salary sacrifice is a common and well-understood arrangement.

With salary sacrifice:

• Your pension contribution is taken before tax

• Your taxable salary is reduced

• You receive full tax relief at source

✅ You do NOT include salary sacrifice pension contributions on your Self-Assessment tax return.

There is no additional tax relief available - it has already been applied.

2. Net Pay Arrangement

A net pay arrangement works in a similar way.

With this method:

• Your pension contribution is deducted before income tax

• Tax relief is automatically applied through payroll

✅ You do NOT include net pay pension contributions on your Self-Assessment tax return.

Again, the maximum tax relief has already been given.

3. Relief at Source (The One That Causes Confusion)

This is the method we see most often causing problems.

With relief at source:

• Your full salary is taxed first

• Your pension contribution is then taken from your net pay

• The pension provider later claims basic rate tax relief and adds it to your pension fund

This means:

• Basic rate taxpayers usually won’t see a difference on their tax return

• Higher rate and additional rate taxpayers may be entitled to extra tax relief

✅ If your employer uses relief at source, you SHOULD include these pension contributions on your Self-Assessment tax return.

Failing to do so can mean missing out on tax relief you are legally entitled to.

How Can You Tell Which Pension Method Your Employer Uses?

If you’re unsure, there are two simple checks:

1. Look at your payslip: it often shows how pension contributions are deducted

2. Ask your employer or payroll department directly

Once you know which method applies, you’ll know whether or not the pension contribution belongs on your tax return.

Personal Pension Contributions for Freelance Musicians

If you are self-employed (or topping up your pension personally), the rules are much more straightforward.

If you make personal pension contributions, you should always include them on your Self-Assessment tax return

Why doesn’t it always change the tax bill?

• If you are a basic rate taxpayer, the government has already added the 25% tax relief to your pension contribution

• If you are a higher rate or additional rate taxpayer, you should see further tax relief through your tax calculation

✅ This is why it is especially important for higher earners to include pension contributions correctly.

The Two Big Pension Questions - Answered

This guidance clears up the two questions we hear most often from musicians:

1. What type of pension contribution is this?

2. Do I need to include it on my Self-Assessment tax return or not?

Once you understand the method being used, this section of your tax return becomes far less intimidating - and you can move on knowing it’s done correctly.