Have I paid enough into my pension to avoid 40% tax?

t2rry

As per the title, just wanting a last minute check that I've calculated this correctly (whilst I can still pay into SIPP before FY 23/24 ends tomorrow!):

£39,087.95 = Taxable income via PAYE (after employer pension contributions)
£12,528.98 = Self Employed income (gross income less expenses)
£     867.94 = Savings Interest
£52,484.87 Total

My tax code is 1076L due to previous PAYE underpayment (not sure how this happened but there we go)

So I get:
up to £10,760.00 = Personal Allowance 0%
up to £48,429.00 = 20% (£37,669 +£10,760)
so anything over £48,429 = 40% 

£52,484.87 - £48,429.00 = £4,055.87 over
£4,055.87/1.25 = £3,244.70 - this is the figure I think I need to pay to my SIPP, giving me the extra £4,055.87 required at 20% tax via my SATR.

Am I correct?
THANK YOU IN ADVANCE!

BoGoF

t2rry said:

As per the title, just wanting a last minute check that I've calculated this correctly (whilst I can still pay into SIPP before FY 23/24 ends tomorrow!):

£39,087.95 = Taxable income via PAYE (after employer pension contributions)
£12,528.98 = Self Employed income (gross income less expenses)
£     867.94 = Savings Interest
£52,484.87 Total

My tax code is 1076L due to previous PAYE underpayment (not sure how this happened but there we go)

So I get:
up to £10,760.00 = Personal Allowance 0%
up to £48,429.00 = 20% (£37,669 +£10,760)
so anything over £48,429 = 40% 

£52,484.87 - £48,429.00 = £4,055.87 over
£4,055.87/1.25 = £3,244.70 - this is the figure I think I need to pay to my SIPP, giving me the extra £4,055.87 required at 20% tax via my SATR.

Am I correct?
THANK YOU IN ADVANCE!

No, not correct.

Ignore the restriction in your tax code. Your higher rate threshold remains your full personal allowance plus the basic rate band.

The underpayment in your tax code is accounted for elsewhere in your tax calc.

t2rry

OK thanks, looks like I've overcomplicated it then, so the £50,270 threshold remains where it is, just my personal allowance element within that is smaller this year?  Is that right?

So I've certainly paid enough, if anything I've been too conservative, but otherwise moving forward years, I've got the right method of calculation?

Entirely correct calc would be:
£52,484.87 taxable income
less £50,270 40% bracket
= £2,214.87 over
/1.25 = £1,771.89 to pay into SIPP

Thanks