Tax Relief on salary increase

banlouw

Good day all. 

I need some advice please. Im due to receive a salary increase of £1 per hour. Thats £45 per week. 

My annual salary at the moment is £30934 but with raise it will be £33274. My pension contribution is 5%

How can i work out what my best option is... To actually receive more pay per month. Do i increase my pension contribution to increase tax relief? 

Your assistance will be greatly appreciated

Regards

Nomunnofun1

banlouw said:

Good day all. 

I need some advice please. Im due to receive a salary increase of £1 per hour. Thats £45 per week. 

My annual salary at the moment is £30934 but with raise it will be £33274. My pension contribution is 5%

How can i work out what my best option is... To actually receive more pay per month. Do i increase my pension contribution to increase tax relief? 

Your assistance will be greatly appreciated

Regards

Not sure what you are seeking here but, ignoring the pension contribution as we don’t know the methodology, you will lose 28% of your additional £45 per week - you will be £35.10 better off! 

Bookworm105

your pay rise does not alter the fact you are a 20% (basic rate) taxpayer 

putting more into the pension won't increase or decrease the rate of tax relief you get on pension 

not putting money into pension but leaving it to increase your take home pay won't increase or decrease the rate of tax you pay on the money