How is it possible to get to the maximum 72% tax relief?

bannertime

My wife and I are both basic rate tax payers, we have one child, claim tax credits and make pension contributions, is our maximum relief 59% ( 20% + 39%) and is it possible for us to get to the theoretical maximum of 72%? Thanks.

dunstonh

The theoretical maximum does not actually mean tax relief alone but the addition of extra working/childrens tax credits.

Pension contributions reduce your income for tax credit purposes. So, by having a lower income, you can get higher tax credits. To get near the theoretical maximum you would also need childcare.

Here is a thread from 2004 which explains it more.

http://forums.moneysavingexpert.com/showthread.html?t=1090