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Paying into pension from gross pay
HD2017
Posts: 6 Forumite
in Cutting tax
Hello
Please could I get some advice or tips on the following?
I've recently changed jobs and as a result of my previous salary, bonuses and new salary I may fall into higher rate of tax.
Could I make a direct payment into my pension scheme and recover the tax? If yes, does the pension scheme recover it (SW) or do I need to file a tax return?
Looking forward to any advice.
Please could I get some advice or tips on the following?
I've recently changed jobs and as a result of my previous salary, bonuses and new salary I may fall into higher rate of tax.
Could I make a direct payment into my pension scheme and recover the tax? If yes, does the pension scheme recover it (SW) or do I need to file a tax return?
Looking forward to any advice.
0
Comments
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Do you mean making a contribution to a "relief at source" pension scheme such as a SIPP or personal pension?0
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Thanks for replying.Dazed_and_C0nfused said:Do you mean making a contribution to a "relief at source" pension scheme such as a SIPP or personal pension?
I don't have a SIPP but I could if need be.
Contribution would be to personal pension I had with my previous employer.0 -
You really need to know what method you will be using to contribute to the pension to be able to understand the tax benefits.
Reference to paying from gross pay is fairly unusual and generally relates to public sector schemes (teachers pension, civil service etc).
If you check with the pension company you will be using which method you will be using then I can explain further.
The normal method for a personal pension, stakeholder or SIPP is "relief at source"1
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