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Pension contributions and tax band

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  • MetaPhysical
    MetaPhysical Posts: 457 Forumite
    100 Posts First Anniversary Photogenic Name Dropper
    edited 6 March 2024 at 10:38PM
    I think I am the other poster than Dazed and confused is referring to.  The way I understand it is that making the large pension contribution doesn't reduce your taxable earnings per se but it expands the basic rate band by the contribution you are adding to your pension, which has the net effect of making your 40% band that much higher and also restores proportionally your personal allowance. 
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