Tax Rules

apollock0

Hi,

I have a question with regards to tax payments and whether or not I can get benefits if I pay most of my salary towards my pension.  I will try to explain without sharing to much detail.

I was recently promoted and I am now being paid more meaning I have had to stop the marriage allowance and child benefit.  I know the limits on Child benefit, but was still over this meaning I would be paying more in tax, so decided cancelled it.

My question is, if I pay the increased salary into my pension, and reduce my take home salary to below both these thresholds, can I then claim them even though my contracted salary is above the threshold?

Dazed_and_C0nfused

You don't have to stop either.

HMRC will cancel Marriage Allowance if, at the end of the tax year, you are no longer eligible.

Child Benefit might need to be repaid but nothing to stop you getting it now and, if necessary, repaying later.

Your "salary" is pretty meaningless for tax purposes.  What counts is what goes on your P60 as your taxable pay.

Before doing anything though which method would you use to get extra money into your pension?   They all work slightly differently and you should really understand which method you will be using first.

Normal methods are,
Net pay

Relief at source

Salary sacrifice