Better than 40% tax relief

david78

Hi Nigel,

Yes, it all changes from next year, so there's not as much of a benefit. But the principle is sound. I have configured my spreadsheet so that it can cope with changes in bands and rates (allowing what-if type calculations).

If nothing else, it may be useful for someone working out how much to pay into their pension this year to minimise their tax liability.

The spreadsheet is available from the link below. It works in Excel and should work ok in open office or google docs. There are no macros in it.

http://upload2.net/page/download/FW7MGLY7F8aVfk7/myTax.xls.html

You type your own figures in the shaded boxes.

David.

jem16

Thanks for the spreadsheet.

My savings interest and dividend payments take me into the higher rate tax bracket - without those I would be a basic rate taxpayer. I worked out how much last year and paid that amount into a pension plan to avoid that extra tax. I have a simple spreadsheet set up so that I know how much to pay into the pension each year, although not quite as elaborate as yours.

It was very interesting to see how the different amounts paid into the pension changed the percentage of tax relief. Getting it spot on gave the maximum.

david78

Thanks jem16. I should point out that the amount of tax saved shown at the bottom of the spreadsheet is the additional tax saved (the difference in the two tax figures). There is also 22% of the pension contribution. This is a bug, which I am fixing and will post a new link in the next 10 mins.

To get the total tax saved with the first version above, you can multiply the total % figure by the gross pension contribution.

David.

david78

The corrected version is available here:

http://upload2.net/page/download/aHG9vHbZCLusbMT/myTax_v2.xls.html

I have broken the savings down into those given automatically (and credited to your pension plan) and those which are rebated back to you or used to offset future tax (claim via a tax return etc). I give the values in pounds and as a percentage.