How do I reduce my tax bill on £113k per annum - pension?

OET10

Hi All need advice

 I have a tax code at the moment of C1306L but am on track to earn £113k this tax yr 23/24.

I want to ensure my tax allowance isn’t reduced - is the best way to put £13k into my company pension currently by the end end of tax year by contributing monthly. To date I have put in about £1800 into my pension since April which would leave me the balance of £11200 to contribute.

In my head this way I reduce taxable salary to £100k maintain my allowance and boost my pension in the meantime?

Dazed_and_C0nfused

Only some types of pension contributions reduce your taxable income.

Others can have the same overall impact but are slightly more complicated in how they work.

Will you be getting the money into your pension by,

Net pay
Relief at source (RAS)
Salary sacrifice 

kinger101

I'm not sure if you've had an exceptional year due to a one off bonus, but paying the equivalent of £600 pcm into your pension is already on the low side relative to income.

One way or another, you need to drop your adjusted net income to below £100k to avoid the 60% income tax bracket, but I think it's worth thinking what your long term strategy for retirement is.

Just browsing the pensions forum here is a great place to start 

Linton

WIth that level of income it seems to me that you are losing a lot of money by not paying a great deal more into your pension.  Even after you reduce your taxable income to below £100K each £ you put into your pension reduces your net income by 60p.

OET10

Thanks all for comments thus far.

For clarity I pay 6% of my gross salary per month into my pension and the company the provides 15%(max) so overall 21% in total. I can increase my % above 6% and so will need to adjust so that I can ensure taxable income drops to under £100k I assume.

Dazed_and_C0nfused

OET10 said:

Thanks all for comments thus far.

For clarity I pay 6% of my gross salary per month into my pension and the company the provides 15%(max) so overall 21% in total. I can increase my % above 6% and so will need to adjust so that I can ensure taxable income drops to under £100k I assume.

As explained previously only certain types of pension contribution reduce your taxable income.

I'm not sure that is what you really want to achieve but if it is then you can only do that by making net pay contributions.

Or agreeing to a reduced salary in return for additional employer contributions.

OET10

Thanks for your feedback I’m going to increase my pension contribution which reduces my taxable income go8ng forward and get under the £100k.