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Sudden salary increase from 40k to 60k - increase pension contributions

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Comments

  • Pat38493
    Pat38493 Posts: 3,421 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Did OP ever actually state that the pension contributions were RAS Relief at source?  I might have missed it in this thread?

    If not - OP you should check how your pension contributions are done today as it makes a difference to some of the above comments - it will be one of :
    Relief at source
    net pay
    salary sacrifice.
  • Qyburn
    Qyburn Posts: 3,808 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    The figures he posted looked like RAS.

    It's a minor point but i don't think the explanations are quite correct for Scotland. RAS contributions increase the "Scottish basic rate limit" to quote from my tax return, so reduce the amount taxed at 21% as well as at 42%. 

    However this is done after the event at the tax return stage. The payroll will still tax at 19, 20, 21 and 42% just as if they didn't know about the RAS contributions.
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