Tax reduction

Dazed_and_C0nfused

Bernie25 said:

Thanks for all the input so far. Very helpful!

The reason why the pension is tiny is I invest in oversea properties at the moment so I need the cashflow in hand. Diversifying as opposed as only bulking the pension pot!  Is that wise still?

Going forward, I will be increasing by pension contribution adhoc when I do not need to show affordability for mortgages/loans etc related to other investment.

Thank you folks.

Any other ideas? As for a salary bracket that would be making me avoid the peak tax ( 60%) gap? I read that up to 125k, one pay this extra tax but not sure if earning more than that will make one skip it. Still trying to understand the tax maze!

Cheers,
B

No.  It isn't your earnings that are the decisive factor either.

It is adjusted net income and for most people that is the total of all taxable income less any Gift Aid donations or relief at source (RAS) pension contributions.

So you can easily have taxable income of say £130k and retain your full Personal Allowance.

[Deleted User]

Dazed_and_C0nfused said:

Bernie25 said:

Thanks for all the input so far. Very helpful!

The reason why the pension is tiny is I invest in oversea properties at the moment so I need the cashflow in hand. Diversifying as opposed as only bulking the pension pot!  Is that wise still?

Going forward, I will be increasing by pension contribution adhoc when I do not need to show affordability for mortgages/loans etc related to other investment.

Thank you folks.

Any other ideas? As for a salary bracket that would be making me avoid the peak tax ( 60%) gap? I read that up to 125k, one pay this extra tax but not sure if earning more than that will make one skip it. Still trying to understand the tax maze!

Cheers,
B

No.  It isn't your earnings that are the decisive factor either.

It is adjusted net income and for most people that is the total of all taxable income less any Gift Aid donations or relief at source (RAS) pension contributions.

So you can easily have taxable income of say £130k and retain your full Personal Allowance.

I’m reading that the op believes that earning ‘over £125k’ is enough to ‘skip’ the 60% marginal rate as one would not be earning within that bracket!