Pension contributions /

Tesco_Tom

Thanks for all the input. I will do some more investigation and up my contributions to one of my pensions and avoid 40% tax

Tesco_Tom

Just a quick query on this one after receiving my first payment of the new tax year. As there was a wide range of funds available with low charges in my company scheme, I plumped to keep it simple and increase contributions to it.

When I input my new salary and pension contribution figures to the 'income tax checker' either on this or other sites, it seems to show that I should have a higher net pay than actually received. My increased contributions have meant that I have avoided the 40% tax bracket, but my net pay is less than the calculator shows. Do I need to contact the tax office to get my tax code changed? Do I need to fill in a SA form at the end of the year to reclaim? or is there something else I am missing?

CLAPTON

maybe give us the figures so we can check them for you?

Tesco_Tom

Monthly Figures

Gross - £3,678
Tax code - 747L
Pension - 144.73
Tax - 638.26
NI - 355.32
Net - 2539.86

CLAPTON

your figures are correct on the basis that your pension payments are deducted AFTER tax and not before


so you will need to claim the extra 20% back from HMRC; in this month you paid about £55 at 40% which is reclaimable

Tesco_Tom

CLAPTON wrote: »

your figures are correct on the basis that your pension payments are deducted AFTER tax and not before


so you will need to claim the extra 20% back from HMRC; in this month you paid about £55 at 40% which is reclaimable

Thanks for the quick response.

Robert4_2

See if you can elect for a salary sacrifice - this saves some NI too if your employer agrees. I am sure someone here would know how it works.