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Sudden salary increase from 40k to 60k - increase pension contributions
Comments
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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.1 -
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.1
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