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Reclaiming my Personal Allowance
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five_o
Posts: 18 Forumite
Hello All.
HMRC sent me a Tax Coding notice for the 2020/21 Financial Year. It says that my Personal Allowance will be 0 as I will earn over £125,000. However, my Tax Code has been set as 930L to take into account my higher rate tax rebate as I have maxed out my pension contributions (£40k) for last couple of years.
So my question is.........if I was do do a salary sacrifice (pension contribution) to bring my salary down to £100k will that reinstate my Personal Allowance? It just seems that I would be eating my cake and having it. i.e. getting my full pension contribution and then also reclaiming my full personal allowance. I have a feeling it is too good to be true.
HMRC sent me a Tax Coding notice for the 2020/21 Financial Year. It says that my Personal Allowance will be 0 as I will earn over £125,000. However, my Tax Code has been set as 930L to take into account my higher rate tax rebate as I have maxed out my pension contributions (£40k) for last couple of years.
So my question is.........if I was do do a salary sacrifice (pension contribution) to bring my salary down to £100k will that reinstate my Personal Allowance? It just seems that I would be eating my cake and having it. i.e. getting my full pension contribution and then also reclaiming my full personal allowance. I have a feeling it is too good to be true.
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