How much to put into pension to avoid 40% tax?

longwalks1

As a higher rate tax payer, and now at 40 years old I'm seriously looking into my pension contributions, and how much I can pay in.

I have a company DB scheme, and also a DC one running too, is there a calculation/way of determining maximum tax saving by how much i pay in each month?

Anything Ive missed off, please ask

Bravepants

britishboy wrote: »

As a higher rate tax payer, and now at 40 years old I'm seriously looking into my pension contributions, and how much I can pay in.

I have a company DB scheme, and also a DC one running too, is there a calculation/way of determining maximum tax saving by how much i pay in each month?

Anything Ive missed off, please ask

Not sure if I'm allowed to include links to files here, but here goes anyway.

This is a couple of sheets from my own retirement spreadsheet workbook. The first sheet contains common financial variables, like tax limits, NI limits etc. The secon sheet allows you to enter your salary and pension contributions and calculates tax at various levels. Any cell shaded green can be used for user input. So enter you salary at the top left of the table of the "Salary" sheet, and then enter pension contributions in percentage of gross salary, you can see the effect on your monthly take home. It's accurate to a few pounds, and at the moment only handles upto 40% tax rate. I'm always tinkering with this stuff!

https://www.dropbox.com/s/tgy3ydoytk8uz8s/TakeHome-V0.1.xlsx?dl=0


Click the link, then go to the top right menu and select download.

(Edit: I'll actually get it right in a minute!)