Buying additional Pension from work place

pantaiema

I am currently 54, high rate taxpayer earning GBP 50k+. My employer pay about 14.5 percent to my pensiun while I contribute 8.5percent. I could contribute more to my pension by lumpsump per annum and/or monthly taken directly from my monthly salary. I called my pension provider and I have been told that I could only pay about gbp700 monthly or lumpsump per annum of about gbp6900 maximum until I get retired of 67you.

I have reasonable number of cash in high interest current account and Reg saver account. but imo I will be benefiting from tax POV if I pay monthly as this will be taken from gross salary. So it will be less salary taxed at higher rate. Do I get it right!?

I am interested to reduce my salary to be taxed at 40percent. What else I could do about it. I already maximised my Is as well as will be transferring some of them to S and S Isa.

Any info, comments will be very much appreciated

Linton

Why does your employers pension have this limitation? It doesnt seem to correspond to any HMRC limit.

However, you could set up a personal pension either diy or via an IFA and pay into it with your taxed income. 25% will be refunded (ie basic rate tax) by HMRC into your pension and any higher rate tax refund would come via an increase to your tax code or possibly a lump sum repayment at the end of the tax year.

PS isnt the 8.5% + £8400 sufficient to take you out of higher rate tax?