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Tax confusion
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caromary1056
Posts: 14 Forumite

in Cutting tax
Hi I’d be grateful if anyone can help me out please, I’m trying to bring myself within the basic rate tax bracket.
i took early retirement and have a company pension income of £17,027.92 pa tax code BR.
recently I started a new job
salary £60k plus car allowance £5,610.
I’ve bought some holiday which I think will reduce tax reducing my income by £923.28 pa.
60000.00
17017.92
5610.00
—————-
82627.92 total
923.28 holiday buy
—————-
81704.64 income
I also have married persons allowance of £1260. I’ve worked out that I’d need to put £30,174.64. Pa into a company pension to stop paying 40%tax.
i took early retirement and have a company pension income of £17,027.92 pa tax code BR.
recently I started a new job
salary £60k plus car allowance £5,610.
I’ve bought some holiday which I think will reduce tax reducing my income by £923.28 pa.
60000.00
17017.92
5610.00
—————-
82627.92 total
923.28 holiday buy
—————-
81704.64 income
I also have married persons allowance of £1260. I’ve worked out that I’d need to put £30,174.64. Pa into a company pension to stop paying 40%tax.
Does this sound right as it seems an awful lot to me and would appreciate any guidance with my figures as I’m so confused.
many thanks
many thanks
0
Comments
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My tax code is 1383M on my new job0
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caromary1056 said:I also have married persons allowance of £1260.1
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eskbanker said:caromary1056 said:I also have married persons allowance of £1260.0
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Income of £81704 attracts income of £31434 at 40%.You could put £25147 into a SIPP which will be grossed up by HMRC to £31434 (give yourself some leeway).You can then claim additional tax relief from HMRC of £6286.1
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Nomunnofun1 said:Income of £81704 attracts income of £31434 at 40%.You could put £25147 into a SIPP which will be grossed up by HMRC to £31434 (give yourself some leeway).You can then claim additional tax relief from HMRC of £6286.0
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caromary1056 said:Nomunnofun1 said:Income of £81704 attracts income of £31434 at 40%.You could put £25147 into a SIPP which will be grossed up by HMRC to £31434 (give yourself some leeway).You can then claim additional tax relief from HMRC of £6286.
Some employers will even increase their contribution if you increase yours ( to a point) - worth checking that.1 -
Albermarle said:caromary1056 said:Nomunnofun1 said:Income of £81704 attracts income of £31434 at 40%.You could put £25147 into a SIPP which will be grossed up by HMRC to £31434 (give yourself some leeway).You can then claim additional tax relief from HMRC of £6286.
Some employers will even increase their contribution if you increase yours ( to a point) - worth checking that.0 -
caromary1056 said:eskbanker said:caromary1056 said:I also have married persons allowance of £1260.1
-
caromary1056 said:Albermarle said:caromary1056 said:Nomunnofun1 said:Income of £81704 attracts income of £31434 at 40%.You could put £25147 into a SIPP which will be grossed up by HMRC to £31434 (give yourself some leeway).You can then claim additional tax relief from HMRC of £6286.
Some employers will even increase their contribution if you increase yours ( to a point) - worth checking that.
Do you already contribute to a pension?
If you want to do it this tax year there aren't many days left. Is it already too late for salary sacrifice? Does that need a payroll run?0 -
DRS1 said:caromary1056 said:Albermarle said:caromary1056 said:Nomunnofun1 said:Income of £81704 attracts income of £31434 at 40%.You could put £25147 into a SIPP which will be grossed up by HMRC to £31434 (give yourself some leeway).You can then claim additional tax relief from HMRC of £6286.
Some employers will even increase their contribution if you increase yours ( to a point) - worth checking that.
Do you already contribute to a pension?
If you want to do it this tax year there aren't many days left. Is it already too late for salary sacrifice? Does that need a payroll run?0
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