Avoiding 40% income tax rate by buying added Alpha pension

[Deleted User]

Grateful for any advice on this (and my first post).

Current taxable income is under the 40% threshold. It comprises salary (net pay scheme) and some gross savings interest. Tax code is 1257L. Further savings interest is payable in Jan 25. I know this interest won’t be reported by banks etc until 25-26; 23-24 savings interest is assumed for 24-25, and there is usually a 3 year lag when tax is paid/refunded etc.

This Jan 25 savings will tip me into the 40% bracket. To stay below that threshold, I want to use Alpha added pension contributions as the only method to do this, so not EPA, AVC, SIPP etc. So I plan to apply for this before the Alpha deadline in Feb 2025 (for 25-26) with an annual lump sum payment via salary.

Presumably the added pension lump sum should be at least the gross amount of taxable income that would otherwise fall into the 40% bracket, or are there other factors to consider? And to repeat the lump sum payment in subsequent years although I read the maximum lump sum contribution via salary is one month’s salary (after standard pension and NI deductions), so it may not be enough in future years to keep below the 40% tax threshold.

Lastly for various reasons, I am not aiming to maximise pension (Classic at 60 in 6 years time, undecided when to take Alpha yet). But is buying added pension still worthwhile to keep out of the 40% bracket, even though it is more expensive to do so nearer to Alpha normal pension age and despite the added pension being index linked? Using the scheme’s calculator, it’s about £140 annual self added pension for say, £2000 lump sum (less with actuarial reductions if taken earlier than 67).

Out of interest, presumably higher rate pension tax relief only applies to the salary element above the 40% threshold.

Advance thanks.

[Deleted User]

The situation in my post is now not relevant - if any mods/admin are reading this, can the thread be closed? Thanks.