📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Tax Relief on salary increase

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

Comments

  • 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
    Bookworm105 Posts: 2,015 Forumite
    1,000 Posts First Anniversary Name Dropper
    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 

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.4K Banking & Borrowing
  • 253.3K Reduce Debt & Boost Income
  • 453.8K Spending & Discounts
  • 244.4K Work, Benefits & Business
  • 599.7K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 258K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.