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Could having a second pension increase my tax credits?
Legacy_user
Posts: 0 Newbie
I'm thinking of setting up a second pension anyway for the tax relief, if I can find a good enough one
But could I use it to reduce my pre-tax income on the tax credits? Or would it be seen as income that I could've had but chose not to have?
I don't know if I will be paying before tax or paying in taxed money and then getting relief. I won't be tampering with my existing workplace pension. I don't want to break any rules
But could I use it to reduce my pre-tax income on the tax credits? Or would it be seen as income that I could've had but chose not to have?
I don't know if I will be paying before tax or paying in taxed money and then getting relief. I won't be tampering with my existing workplace pension. I don't want to break any rules
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Comments
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I don't know if it is legal but morally it is questionable. Basically, you pay into a fund for your retirement which reduces your current income so that the state tops it up. In effect, they/we are paying for that pension.
Crazy, I do hope it isn't possible.0 -
Nothing wrong with paying into a pension. Yes it will reduce your income for tax credits.0
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No, nothing wrong with it at all if you are personally paying for it. In the case above, he wouldn't be.0
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Well about 27% I'd pay for initially
41% tax credit taper + 20% PAYE + 12%ni
Then on drawdown 75% will face 20% paye
Am restricted to no more than 17.5% tax relief on whats going in I believeThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
By that I mean 17.5% of income can get tax relief, no moreThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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