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Salary Package Advice
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TheSpectator said:Putting the OP's wrong assumptions to one side, as 45% tax is charged on income over £75k in Scotland you should be looking to mitigate this as far as possible.0
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TheSpectator said:Putting the OP's wrong assumptions to one side, as 45% tax is charged on income over £75k in Scotland you should be looking to mitigate this as far as possible.
This was the basis of my original question. I guess I should seek professional help on managing this.0 -
Scotslad87 said:TheSpectator said:Putting the OP's wrong assumptions to one side, as 45% tax is charged on income over £75k in Scotland you should be looking to mitigate this as far as possible.
This was the basis of my original question. I guess I should seek professional help on managing this.
The car allowance equals £6,420 per year so the OP's annual income is £121,420 per year. The OP needs to add to that any income from other sources such as bank / savings account interest.Scotslad87 said:Base Annual Salary: £95000Monthly Car Allowance: £535Annual Bonus: £20000 (Paid as a lump sum in May)
Pension contributions are the most advantageous way to mitigate this higher rate tax liability above the £75k threshold.
The most efficient way to achieve that, and the amount to be contributed will depend on the options available to the OP. Is the OP able to use Salary Sacrifice? If so, that is likely to be the most tax efficient process.0
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