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Avoiding 40% tax
Notfarfromtheborder
Posts: 222 Forumite
in Cutting tax
Hi
Quick question, my wife is a nurse and got a back payment that landed in this tax year, I was looking to reduce tax by opening a pension but not sure I need to. Her gross pay is over the HRT bracket, but taxable pay below. I presume that this is due to pension being taken from net pay and then relief added?
Numbers below
Gross Pay £52358.96
Taxable Pay £47528.92
She also had savings interest that no tax has been paid on of £2477.
My presumption is that adding taxable pay (not gross pay) and savings interest gets to £50006 so no 40% tax payable.
She would however be liable for tax of £2477 - £1000 = £1477 @ 20% = £295.40 that would be collected retrospectively via paye?
Am I on the right lines??
Many thanks
Quick question, my wife is a nurse and got a back payment that landed in this tax year, I was looking to reduce tax by opening a pension but not sure I need to. Her gross pay is over the HRT bracket, but taxable pay below. I presume that this is due to pension being taken from net pay and then relief added?
Numbers below
Gross Pay £52358.96
Taxable Pay £47528.92
She also had savings interest that no tax has been paid on of £2477.
My presumption is that adding taxable pay (not gross pay) and savings interest gets to £50006 so no 40% tax payable.
She would however be liable for tax of £2477 - £1000 = £1477 @ 20% = £295.40 that would be collected retrospectively via paye?
Am I on the right lines??
Many thanks
0
Comments
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That looks correct to me
0
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