We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
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
-
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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.6K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards