Need Enlightenment

Mr_Proctalgia

jem16 wrote: »

So I'm assuming your AVCs are paid from gross salary?

Will you be a higher rate taxpayer if you include both salary and pension income?

Oh jem16.... Higher rate tax payer? I wish

I shall be nowhere near to a higher rate, and, yes, the AVC's and normal pension payments are all taken gross and all go into the same pot together with the companys 6.5%. So they are not really AVC's in the strict sense just higher payments on my part.

Does this help?

jem16

Mr_Proctalgia wrote: »

Does this help?

Yes - thanks.

I was just wondering if there was a way of getting your tax code lower but it doesn't look like it.

Mr_Proctalgia

jem16 wrote: »

Yes - thanks.

I was just wondering if there was a way of getting your tax code higher but it doesn't look like it.

The only way I can think of LOWERING my tax code and thus have more tax to pay on my wages was to move some of it to cover part of my pension income and thus be able to increase my AVC's some more as some tax would be there to be lost again?

jem16

Mr_Proctalgia wrote: »

The only way I can think of LOWERING my tax code and thus have more tax to pay on my wages was to move some of it to cover part of my pension income and thus be able to increase my AVC's some more as some tax would be there to be lost again?

Sorry - have amended my post to read lower which was what I meant.

I would expect HMRC to assign a BR tax code to your pension but you could ask them to split your tax code as you suggest. Either that or find some taxable benefits from your employer.