Increased Pension Contributions and tax taper rate

in Cutting tax
3 replies 109 views
mcnicm20mcnicm20 Forumite
6 Posts
Fourth Anniversary First Post
I’m going to hit the £100k taper rate and have been told I can increase my pensions contributions for the rest of the tax year up to 50%, will that impact the amount of tax I pay and or the taper rate please? 

Thank you 


  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
    9.6K Posts
    1,000 Posts Third Anniversary Name Dropper
    Tapered Personal Allowance is based on adjusted net income and pension contributions generally reduce that, making them very tax efficient.

    But you need to know which method would be used to get the money into the pension to fully understand how this would work.

    The normal options are,

    Net pay
    Relief at source
    Salary sacrifice

  • mcnicm20mcnicm20 Forumite
    6 Posts
    Fourth Anniversary First Post
    Unfortunately not a clue. I work from an umbrella company so they’re just increasing my employee contributions 
  • Grumpy_chapGrumpy_chap Forumite
    12K Posts
    Ninth Anniversary 10,000 Posts Name Dropper Combo Breaker
    Most Umbrella Companies will operate pension as Salary Sacrifice.
Sign In or Register to comment.
Latest MSE News and Guides

Did you know there's an MSE app?

It's free & available on iOS & Android


Regifting: good idea or not?

Add your two cents to the discussion

MSE Forum

Energy Price Guarantee calculator

How much you'll likely pay from April

MSE Tools