100k taxable income - too late to reduce?

btcp

I suppose this is a silly question, exuse my tax illiteracy. I had a couple of pay raises this year and it took me a bit over 100k, plus it seems that multiple tax benefits adds up into a few thousand. I will watch it next year and thought of investing more in pension to stay below 100. The question is about this year, too late? I suppose I cannot simply pay a lump sum to my pension that will make my taxable amount below 100 and I save taxes this way?
Thank you!

Dazed_and_confused

Why can't you?

Even if it is to late for your company scheme you could consider a personal pension/SIPP.

This wouldn't reduce your taxable income but it would reduce your adjusted net income and your Personal Allowance entitlement is established by reference to adjusted net income, not taxable income.

btcp

Dazed_and_confused wrote: »

Why can't you?

Even if it is to late for your company scheme you could consider a personal pension/SIPP.

e.

Not sure why, I just don’t know what options I have as I didn’t come across a 100k income before. Are you saying I can put some money into my pension independently from my work scheme and then report it in self assessment? Thank you!

tripled

You can make personal contributions and claim the tax back on your self-assessment.

Get an accountant, they can examine your finances and advise you on tax efficient strategies. The cost of a mistake would likely be more than the cost of the accountant.

btcp

tripled wrote: »

You can make personal contributions and claim the tax back on your self-assessment.

Get an accountant, they can examine your finances and advise you on tax efficient strategies. The cost of a mistake would likely be more than the cost of the accountant.

Thank you for your answer, that’s clear. I realise I may not understand some basics but I am keen to learn so I can manage my finances better in future. Anyone can get an accountant, I wouldn’t ask on a forum though if I were interested in that route...

xylophone

Are you able to make a one off contribution to your work pension?

If not, you can quickly open a SIPP and contribute to that.

https://www.hl.co.uk/pensions/contributions

btcp

xylophone wrote: »

Are you able to make a one off contribution to your work pension?

If not, you can quickly open a SIPP and contribute to that.

https://www.hl.co.uk/pensions/contributions

Thank you for your reply. I have Scottish Widows pension fund through work, I will call them and ask if I can contribute extra - outside of my regular % that is taken from my salary. I am not sure if I am I allowed but it would be good if I can do so.

On-the-coast

And / Or make a donation to charity. You have lots of options for reducing tax, and you have over a month.

btcp

I read on the adjusted income and there is a huge detail that I didn’t take in mind. I have RSU vesting at the end of March that will add to the amount. Say my income from employment is 106k and my RSU income is 20k, it means I need to get 26k cash and pay into pension to reduce it. This is a lot of cash that I don’t have right now....

londoninvestor

btcp wrote: »

I read on the adjusted income and there is a huge detail that I didn’t take in mind. I have RSU vesting at the end of March that will add to the amount. Say my income from employment is 106k and my RSU income is 20k, it means I need to get 26k cash and pay into pension to reduce it. This is a lot of cash that I don’t have right now....

It's £20.8k (that's the amount of the cash contribution that will result in £26k going into your pension after BR tax relief). That may not make the problem seem much less, I appreciate...

dunstonh

You can pay into a pension right up to the last day of the tax year.