Pay more into pension

FlubM

I am employed on a salary of £47500 per year and am auto enrolled via a salary sacrifice in the People's Pension.  My employer and I both pay the legal minimum.  My employer does not match additional contributions but does pay the NI it saves into the pension.  I am 60 years old and gave just started  receiving an LGPS pension of £13000 per year which Idon't currently need to spend.  I think it might be beneficial to pay more of my salary into the People's pension and have two queries:  how much extra to pay in and, when I do, how do I get HMRC to reduce the tax deducted from my LGPS pension?

Dazed_and_C0nfused

FlubM said:

I am employed on a salary of £47500 per year and am auto enrolled via a salary sacrifice in the People's Pension.  My employer and I both pay the legal minimum.  My employer does not match additional contributions but does pay the NI it saves into the pension.  I am 60 years old and gave just started  receiving an LGPS pension of £13000 per year which Idon't currently need to spend.  I think it might be beneficial to pay more of my salary into the People's pension and have two queries:  how much extra to pay in and, when I do, how do I get HMRC to reduce the tax deducted from my LGPS pension?

That suggests salary sacrifice is the method being used.

Which means there is unlikely to be a direct impact on the LGPS pension income.

But if you update HMRC with your new estimated earnings from your employment (the figure you expect your P60 to show) then it may well result in an improved tax code for your employment.

The above assumes HMRC have already reviewed your tax codes since the LGPS pension started and you have a reduced tax code (for your employment) which reflects the fact that you are currently a higher rate payer but don't pay higher rate tax at the employment on its own.

FlubM

Currenty,I receive the same net amount as before from my employment with all the additional tax being deducted from the LGPS pension.  My two queries are
1.  Will I pay less tax overall if I pay more into ky current workpkace pension?
2.  If it is better to do that, how will HMRC know to dedyct less from my LGPSboensiin?

Sam_666

1. Yes. Google salary sacrifice pensions
2. HMRC keep crystal balls in basement. Seriously, you will pay less tax on your wages, not pension. Read about 1.