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higher tax bracket
stationairy1901
Posts: 2 Newbie
in Cutting tax
Sorry for the newbie questions but just moved into the higher tax bracket due to a promotion at work.
I receive around 62K per year with around a 15% bonus per year paid in march subject to company performance. I also pay 13% of my salary into my pension through work which is take out of my gross salary (before tax) and they contribute a maximum of 10%
I currently receive around £3.2K per month
I have been looking at electric vehicles through a salary sacrifice as i believe this is taken on the gross so would save me tax
question would be
1) this is around 10K per year in salary sacrifice so would this mean i would only pay 20% on my whole salary as with pension contribution it takes me under the 40% limit ? (if i paid in £3300 of my bonus into my pension)
2) am i really getting the saving i think i am by moving into the lower bracket ?
3) excluding the electric car question and just thinking of my salary as is if i put the delta between what i get now and the lower tax bracket £21300 would i really save £8.5K in take putting the £21.3K in to my pension ? So if i have my figures right of the £21.3K this equates to £1775 per month which is broken down £710 i pay to tax man and £1065 to me
any help you can offer would be much appreciated and if i have all wrong after laughing please point out my mistakes
I receive around 62K per year with around a 15% bonus per year paid in march subject to company performance. I also pay 13% of my salary into my pension through work which is take out of my gross salary (before tax) and they contribute a maximum of 10%
I currently receive around £3.2K per month
I have been looking at electric vehicles through a salary sacrifice as i believe this is taken on the gross so would save me tax
question would be
1) this is around 10K per year in salary sacrifice so would this mean i would only pay 20% on my whole salary as with pension contribution it takes me under the 40% limit ? (if i paid in £3300 of my bonus into my pension)
2) am i really getting the saving i think i am by moving into the lower bracket ?
3) excluding the electric car question and just thinking of my salary as is if i put the delta between what i get now and the lower tax bracket £21300 would i really save £8.5K in take putting the £21.3K in to my pension ? So if i have my figures right of the £21.3K this equates to £1775 per month which is broken down £710 i pay to tax man and £1065 to me
any help you can offer would be much appreciated and if i have all wrong after laughing please point out my mistakes
0
Comments
-
Is it £62k plus 15% bonus or £62k including the bonus?
What saving do you think you are getting?
Where are you getting the £21.3k figure from?0 -
The 62k is before the 15% so 71.3 I totally though this does depend if the company hits targets.
The 21.3k is the 71.3k minus the 50k to hit the 20% limit0
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