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Pension Payments Advice Please?
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omg_3
Posts: 101 Forumite
As a 40% tax payer on a portion of my earnings. My Pension is also contracted out of SIPP as it is final salary. My question is for each £1,000 I put into my AVC's, how much will my take home pay be reduced?
Also, same question for the lower tax band please?
Also, same question for the lower tax band please?
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asuming your avc is with your employer then if you pay in 1000 to your avc, you actual take home pay will fall by 600 if you pay tax at 40% and by 780 is you are a standard rate payer...your NI remains unchanged.0
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My Pension is also contracted out of SIPP as it is final salary.
I think it might be SERPS ( State Earnings Related Pension Scheme) , now renamed S2P (State Second Pension) you are contracted out of , rather than SIPP( Self Invested Personal Pension), a newly popular type of personal pension tax wrapper which allows much more investment diversity.
Roll on pensions simplification:rolleyes:
Trying to keep it simple...
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