Does this sound right? Seems low

kidmugsy

"Next year I will be about £4k into the 40% bracket. Assume that's when AVCs come in use": that sounds a pretty good idea.

somethingcorporate

ThomTomato wrote: »

Thanks. At the moment I don't think I need them, I get a monthly bonus that puts my annual salary above the higher rate tax bracket. I only started the scheme 2 when I realised that it would put me under the limit. I'm bordering on the edge right now. I also pay into a share scheme at £50 a month. Next year I will be about £4k into the 40% bracket. Assume that's when AVCs come in use

£36k is not in the top tax bracket.

40% tax comes in at £42,475 (or £35k + tax free allowance).

ThomTomato

somethingcorporate wrote: »

£36k is not in the top tax bracket.

40% tax comes in at £42,475 (or £35k + tax free allowance).

I know, but with employee referral incentives and bonuses, last year I just nudged into the HRT band.
Of course, these can differ YoY, and I may not realise the salary increase antipated next year, but if I do then I estimate I will be £4k (max) into the HRT bracket.
If this happens, then I want to be as tax efficient as possible.