Issues with tax code

sultan123

In April I got a gross salary payment of £27850 (includes a bonus) was on tax code 1257L. Tax paid was £10935.

In May I got gross payment of £8768 AFTER 8% salary sacrifice into pension. This was with a new employer. Tax paid was £2324. I was on tax code of 1257L.

From June, I will get gross payment of £8010 a month. This is AFTER a 8% pension contribution as salary sacrifice.

 HMRC have told me my new tax code for June will be 1136T.

How much do I need to % salary sacrifice into pension to get below 100k for rest of year and get my tax code of 1257L back.

Dazed_and_C0nfused

sultan123 said:

In April I got a gross salary payment of £27850 (includes a bonus) was on tax code 1257L. Tax paid was £10935.

In May I got gross payment of £8768 AFTER 8% salary sacrifice into pension. This was with a new employer. Tax paid was £2324. I was on tax code of 1257L.

From June, I will get gross payment of £8010 a month. This is AFTER a 8% pension contribution as salary sacrifice.

 HMRC have told me my new tax code for June will be 1136T.

How much do I need to % salary sacrifice into pension to get below 100k for rest of year and get my tax code of 1257L back.

Do you expect to have any other taxable income in the current tax year?  For example company benefit, that would be reported on a P11D, interest or dividends.

Any amount of £1 or more is relevant.

sultan123

Dazed_and_C0nfused said:

sultan123 said:

In April I got a gross salary payment of £27850 (includes a bonus) was on tax code 1257L. Tax paid was £10935.

In May I got gross payment of £8768 AFTER 8% salary sacrifice into pension. This was with a new employer. Tax paid was £2324. I was on tax code of 1257L.

From June, I will get gross payment of £8010 a month. This is AFTER a 8% pension contribution as salary sacrifice.

 HMRC have told me my new tax code for June will be 1136T.

How much do I need to % salary sacrifice into pension to get below 100k for rest of year and get my tax code of 1257L back.

Do you expect to have any other taxable income in the current tax year?  For example company benefit, that would be reported on a P11D, interest or dividends.

Any amount of £1 or more is relevant.

Thanks for replying.

The gross given includes other benefits. Only thing is private insurance which is £300 and will be be on P11D

sultan123

Anyone help?

Dazed_and_C0nfused

sultan123 said:

Anyone help?

What do you mean by gross salary?

HMRC have no interest in your salary, it is your taxable pay which is important.

Is the £27,850, £8,768 and £8,010 the taxable pay value i.e. your payslip in the tax month to 5 July 2025 will show your taxable pay as £44,628?

No one will be able to tell you what % to sacrifice as you haven't told us what your taxable earnings, pre any salary sacrifice, are expected to be for each of the remaining 9 months of the tax year.  

But it would be possible to say what you need to restrict your taxable earnings to go avoid any reduction in the Personal Allowance.

eskbanker

If your gross pay so far was £36,618 and you'll also be taxed on £300, you need to keep your remaining income below £63,082, i.e. £6,308 a month.

If your monthly gross of £8,010 is after 8% sal sac, then the unadjusted figure would be £8,706, so you'd need to sacrifice 28% to get that below £6,308 each month.

This assumes you can notify in time to take effect from your June pay - if you couldn't get your pay adjusted until next month then you'd need to tweak the above calculation....

sultan123

Dazed_and_C0nfused said:

sultan123 said:

Anyone help?

What do you mean by gross salary?

HMRC have no interest in your salary, it is your taxable pay which is important.

Is the £27,850, £8,768 and £8,010 the taxable pay value i.e. your payslip in the tax month to 5 July 2025 will show your taxable pay as £44,628?

No one will be able to tell you what % to sacrifice as you haven't told us what your taxable earnings, pre any salary sacrifice, are expected to be for each of the remaining 9 months of the tax year.  

But it would be possible to say what you need to restrict your taxable earnings to go avoid any reduction in the Personal Allowance.

that is the money I get (after salary sacrifice) and then rest is deducted to tax and NI to give me my net pay.

The grosses I have given so far are my gross earnings for the year so what do I need to do to get below 100k is my question as it seems I will be making 116k gross in this tax year (salary sacrifice included within this estimation)

sultan123

eskbanker said:

If your gross pay so far was £36,618 and you'll also be taxed on £300, you need to keep your remaining income below £63,082, i.e. £6,308 a month.

If your monthly gross of £8,010 is after 8% sal sac, then the unadjusted figure would be £8,706, so you'd need to sacrifice 28% to get that below £6,308 each month.

This assumes you can notify in time to take effect from your June pay - if you couldn't get your pay adjusted until next month then you'd need to tweak the above calculation....

Thanks 28% seems high? are you sure this is correct

eskbanker

sultan123 said:

eskbanker said:

If your gross pay so far was £36,618 and you'll also be taxed on £300, you need to keep your remaining income below £63,082, i.e. £6,308 a month.

If your monthly gross of £8,010 is after 8% sal sac, then the unadjusted figure would be £8,706, so you'd need to sacrifice 28% to get that below £6,308 each month.

This assumes you can notify in time to take effect from your June pay - if you couldn't get your pay adjusted until next month then you'd need to tweak the above calculation....

Thanks 28% seems high? are you sure this is correct

Feel free to point out where you believe I've gone wrong!

Dazed_and_C0nfused

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Anyone help?

What do you mean by gross salary?

HMRC have no interest in your salary, it is your taxable pay which is important.

Is the £27,850, £8,768 and £8,010 the taxable pay value i.e. your payslip in the tax month to 5 July 2025 will show your taxable pay as £44,628?

No one will be able to tell you what % to sacrifice as you haven't told us what your taxable earnings, pre any salary sacrifice, are expected to be for each of the remaining 9 months of the tax year.  

But it would be possible to say what you need to restrict your taxable earnings to go avoid any reduction in the Personal Allowance.

that is the money I get (after salary sacrifice) and then rest is deducted to tax and NI to give me my net pay.

The grosses I have given so far are my gross earnings for the year so what do I need to do to get below 100k is my question as it seems I will be making 116k gross in this tax year (salary sacrifice included within this estimation)

If you have earned (taxable income) £44,628 by month 3 of the tax year and will have £300 in company benefits that is a total of £44,928.

Leaving you £55,072 you can earn in the remainder of the tax year before breaching the £100k threshold.  An average of £6,119 I'm taxable pay each month that remains.

The above assumes you don't make any Gift Aid donations or contribute to a pension yourself using the "relief at source" method, for example contributions to a personal pension or SIPP.

sultan123

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Anyone help?

What do you mean by gross salary?

HMRC have no interest in your salary, it is your taxable pay which is important.

Is the £27,850, £8,768 and £8,010 the taxable pay value i.e. your payslip in the tax month to 5 July 2025 will show your taxable pay as £44,628?

No one will be able to tell you what % to sacrifice as you haven't told us what your taxable earnings, pre any salary sacrifice, are expected to be for each of the remaining 9 months of the tax year.  

But it would be possible to say what you need to restrict your taxable earnings to go avoid any reduction in the Personal Allowance.

that is the money I get (after salary sacrifice) and then rest is deducted to tax and NI to give me my net pay.

The grosses I have given so far are my gross earnings for the year so what do I need to do to get below 100k is my question as it seems I will be making 116k gross in this tax year (salary sacrifice included within this estimation)

If you have earned (taxable income) £44,628 by month 3 of the tax year and will have £300 in company benefits that is a total of £44,928.

Leaving you £55,072 you can earn in the remainder of the tax year before breaching the £100k threshold.  An average of £6,119 I'm taxable pay each month that remains.

The above assumes you don't make any Gift Aid donations or contribute to a pension yourself using the "relief at source" method, for example contributions to a personal pension or SIPP.

Thanks but how much do I need to %salary sacrifice into workplace pension for remaining 9 months ro keep under 100k