PAYE Tax code change due to pension payments

Dazed_and_C0nfused

By increasing your tax code allowances by £3,327 your employer will deduct tax on £3,327 less of your earnings.

As this £3,327 clearly all falls into the higher rate bracket it means you won't pay 40 tax on £3,327.

£3,327 x 40% = £1330.80

MoneyPleaseHelp

Thank you. It all makes sense now. 

Now I am writing to them about the current year as I actually paid more, and they said I have to submit a letter. This cannot be done over the phone or by message as they need proof of what I paid in 2023-2024

Dazed_and_C0nfused

MoneyPleaseHelp said:

Thank you. It all makes sense now. 

Now I am writing to them about the current year as I actually paid more, and they said I have to submit a letter. This cannot be done over the phone or by message as they need proof of what I paid in 2023-2024

It would be sensible to add a note to your letter pointing out that the update they have made now for 2024-25 is the latest information for 2024-25 (they usually update your tax code using the info for 2023-24 as an estimate).