How to reduce your tax?

Fuzzythinking

Hi

As I have been working a long hours and getting over-time paid but a large chuck of my income have gone to tax which is quite disheartening. Is there anyway to save my large chuck of money? Pension? Loophole?

Please advise how to save a large chuck of my money?

FT

chrismac1

Pension payment into SIPP or similar before 5 April 2011, to get 40% relief.

Fuzzythinking

chrismac1 wrote: »

Pension payment into SIPP or similar before 5 April 2011, to get 40% relief.

Is that before or after tax?

If yes, will my overtime paid income be paid to SIPP at 40%?

Regards

FT

CLAPTON

if you are a 40% tax payer then additional pension payments will get 40% tax relief
if you pay tax at 20% then you get tax relief at 20%

you haven't given sufficient information to determine your tax rate

40% tax is paid on income above 42,475