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Pension Increase tax question

NorthernMonkey1
Posts: 352 Forumite


in Cutting tax

Hello combined brains on MSE. A quick tax question for those cleverer than I
I've attached my monthly payslip, which shows I pay 42% into my pension, and end up with a smidge over £2500 in my bank account each month. I've just been awarded a 2.5% pay increase, but want to keep my take home pay at £2500. What contribution level do I need to change my pension to, in order to keep a take home pay of £2500 after my pay rise. Pay rise only affects basic pay, and not all the other stuff on there
0
Comments
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Hows about.....
Your salary rises by 2.5% of £5505.02/month = £137.63 giving total income of £5642.65 /month.
As you earn more than £50K/year your NI will rise by 2% of £137.63=£2.75.
So you need to put an extra £134.88 into your pension to take it up to £2446.98.
£2446.98=43.37% of £5642.650 -
I make it £134.88 which is increase of £137.63 less additional NI of £2.50. ie keep the taxable pay the same.0
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