Higher rate band - have I done enough?

Yorkie1
Yorkie1 Posts: 11,528
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After a pay rise earlier this year (backdated to April), I'm checking whether I will still be in the higher rate tax bracket, or have done enough via pension and/or Gift aid to bring myself under the limit, mainly to avoid the reduction in the untaxed savings interest allowed.

If I haven't done enough, how much more would I need to do, either via Pension or Gift aid?

I hope I've set out the relevant information below.

I'd be grateful for any comments, thanks. 

Income
Annual salary = £56169 gross
Savings interest (untaxed) = could be about £2500 
Total gross income = £58430 (rounded)

Pension contributions
Standard CS Alpha = approx £3618 (£2241 YTD, plus 4 more months of apx £344)
EPA Alpha @ 3.3% = approx £1853 (£1236 YTD, plus 4 more months of apx £155)
CS AVCs = £3000 (I have applied to make £1K payments, which I've been told will start next month)
Total pension contributions = £8470 (rounded)

Donations to charity (if relevant)
I expect these to be about £3400 (apx £850 Gift aid reclaim) this financial year.

Tax codes
Tax code for this TY: It was originally 1284L, but about 3 weeks ago I received a revised code of 1324L
(Personal allowance £12570 + Gift Aid £1219 - Untaxed interest £541 = £13248)

I also recently received a refund of £134.20 tax for the TY 2022-23.

Comments

  • Your gross income is £239 out.

    And you do seem to be massively overcomplicating things.

    Your salary really isn't relevant for tax purposes, it's your taxable pay which counts so the P60 pay amount is your starting point.
  • Yorkie1
    Yorkie1 Posts: 11,528
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    Thanks Dazed_and_C0nfused. 

    Taxable pay to end of November was £35,555.20, with the taxable pay that month being £4,182.25.

    Should my ballpark calculations therefore simply be to add £4,182.25 taxable pay in Dec, and £3,182.25 taxable pay in each of Jan - March (i.e., deducting the AVC contribution of £1K per month)?

    Plus the taxable savings interest of £2500?

    That would make a total of £51,784 taxable income?

    And thus not a higher rate taxpayer?


  • Yorkie1 said:
    Thanks Dazed_and_C0nfused. 

    Taxable pay to end of November was £35,555.20, with the taxable pay that month being £4,182.25.

    Should my ballpark calculations therefore simply be to add £4,182.25 taxable pay in Dec, and £3,182.25 taxable pay in each of Jan - March (i.e., deducting the AVC contribution of £1K per month)?

    Plus the taxable savings interest of £2500?

    That would make a total of £51,784 taxable income?

    And thus not a higher rate taxpayer?


    That sounds more like it so if your taxable income was £51,784 and you have ~£4,250 gross in Gift Aid contributions you will be well within the higher rate band.
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