We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Pension contributions and tax band
Options
Comments
-
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.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.3K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards