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40% tax
Comments
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Isthisforreal99 said:Cobbler_tone said:Must be DC as wouldn’t have triggered MPAA otherwise.
"As the contributions are taken after tax it would not reduce your taxable gross"
Confused!.
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ColdIron said:Alitree said:question is can i put more into another pension with my current work to offset thatYes. You can pay into a SIPP or your current pension (if it's a defined contribution one) and HMRC will increase your basic rate band (£37,700) by the amount of the gross contribution (includes your contribution and 20% basic relief). So if you contribute £1,000 your £37,700 will become £38,950 (£37,700 + £1,250) effectively raising the £50,270 threshold to £51,520
As the contributions are taken after tax it would not reduce your taxable gross.
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Alitree said:ColdIron said:Alitree said:question is can i put more into another pension with my current work to offset thatYes. You can pay into a SIPP or your current pension (if it's a defined contribution one) and HMRC will increase your basic rate band (£37,700) by the amount of the gross contribution (includes your contribution and 20% basic relief). So if you contribute £1,000 your £37,700 will become £38,950 (£37,700 + £1,250) effectively raising the £50,270 threshold to £51,520
As the contributions are taken after tax it would not reduce your taxable gross.
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Alitree said:ColdIron said:Alitree said:question is can i put more into another pension with my current work to offset thatYes. You can pay into a SIPP or your current pension (if it's a defined contribution one) and HMRC will increase your basic rate band (£37,700) by the amount of the gross contribution (includes your contribution and 20% basic relief). So if you contribute £1,000 your £37,700 will become £38,950 (£37,700 + £1,250) effectively raising the £50,270 threshold to £51,520
As the contributions are taken after tax it would not reduce your taxable gross.
That means it has no impact whatsoever on your taxable income.
But you get basic rate tax relief added to the pension and your basic rate band is increased by the amount of the gross contribution. So more of your income can be taxed at 20% and less at 40%.0 -
Dazed_and_C0nfused said:Alitree said:ColdIron said:Alitree said:question is can i put more into another pension with my current work to offset thatYes. You can pay into a SIPP or your current pension (if it's a defined contribution one) and HMRC will increase your basic rate band (£37,700) by the amount of the gross contribution (includes your contribution and 20% basic relief). So if you contribute £1,000 your £37,700 will become £38,950 (£37,700 + £1,250) effectively raising the £50,270 threshold to £51,520
As the contributions are taken after tax it would not reduce your taxable gross.
That means it has no impact whatsoever on your taxable income.
But you get basic rate tax relief added to the pension and your basic rate band is increased by the amount of the gross contribution. So more of your income can be taxed at 20% and less at 40%.0 -
Alitree said:Dazed_and_C0nfused said:Alitree said:ColdIron said:Alitree said:question is can i put more into another pension with my current work to offset thatYes. You can pay into a SIPP or your current pension (if it's a defined contribution one) and HMRC will increase your basic rate band (£37,700) by the amount of the gross contribution (includes your contribution and 20% basic relief). So if you contribute £1,000 your £37,700 will become £38,950 (£37,700 + £1,250) effectively raising the £50,270 threshold to £51,520
As the contributions are taken after tax it would not reduce your taxable gross.
That means it has no impact whatsoever on your taxable income.
But you get basic rate tax relief added to the pension and your basic rate band is increased by the amount of the gross contribution. So more of your income can be taxed at 20% and less at 40%.
Reducing your income is obviously another option.0 -
Alitree said:Dazed_and_C0nfused said:Alitree said:ColdIron said:Alitree said:question is can i put more into another pension with my current work to offset thatYes. You can pay into a SIPP or your current pension (if it's a defined contribution one) and HMRC will increase your basic rate band (£37,700) by the amount of the gross contribution (includes your contribution and 20% basic relief). So if you contribute £1,000 your £37,700 will become £38,950 (£37,700 + £1,250) effectively raising the £50,270 threshold to £51,520
As the contributions are taken after tax it would not reduce your taxable gross.
That means it has no impact whatsoever on your taxable income.
But you get basic rate tax relief added to the pension and your basic rate band is increased by the amount of the gross contribution. So more of your income can be taxed at 20% and less at 40%.3 -
Nomunnofun1 said:Alitree said:Dazed_and_C0nfused said:Alitree said:ColdIron said:Alitree said:question is can i put more into another pension with my current work to offset thatYes. You can pay into a SIPP or your current pension (if it's a defined contribution one) and HMRC will increase your basic rate band (£37,700) by the amount of the gross contribution (includes your contribution and 20% basic relief). So if you contribute £1,000 your £37,700 will become £38,950 (£37,700 + £1,250) effectively raising the £50,270 threshold to £51,520
As the contributions are taken after tax it would not reduce your taxable gross.
That means it has no impact whatsoever on your taxable income.
But you get basic rate tax relief added to the pension and your basic rate band is increased by the amount of the gross contribution. So more of your income can be taxed at 20% and less at 40%.
Obviously there are other cliff edges like the reduction to the PSA which may have an impact too.
If you were set on this approach, a better option would be to ask to reduce your hours by an amount that reduces your pay by £1000, at least that way you would actually benefit in some way.• The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
Robert T. Kiyosaki0 -
vacheron said:Nomunnofun1 said:Alitree said:Dazed_and_C0nfused said:Alitree said:ColdIron said:Alitree said:question is can i put more into another pension with my current work to offset thatYes. You can pay into a SIPP or your current pension (if it's a defined contribution one) and HMRC will increase your basic rate band (£37,700) by the amount of the gross contribution (includes your contribution and 20% basic relief). So if you contribute £1,000 your £37,700 will become £38,950 (£37,700 + £1,250) effectively raising the £50,270 threshold to £51,520
As the contributions are taken after tax it would not reduce your taxable gross.
That means it has no impact whatsoever on your taxable income.
But you get basic rate tax relief added to the pension and your basic rate band is increased by the amount of the gross contribution. So more of your income can be taxed at 20% and less at 40%.
Obviously there are other cliff edges like the reduction to the PSA which may have an impact too.
If you were set on this approach, a better option would be to ask to reduce your hours by an amount that reduces your pay by £1000, at least that way you would actually benefit in some way.0 -
Alitree said:vacheron said:Nomunnofun1 said:Alitree said:Dazed_and_C0nfused said:Alitree said:ColdIron said:Alitree said:question is can i put more into another pension with my current work to offset thatYes. You can pay into a SIPP or your current pension (if it's a defined contribution one) and HMRC will increase your basic rate band (£37,700) by the amount of the gross contribution (includes your contribution and 20% basic relief). So if you contribute £1,000 your £37,700 will become £38,950 (£37,700 + £1,250) effectively raising the £50,270 threshold to £51,520
As the contributions are taken after tax it would not reduce your taxable gross.
That means it has no impact whatsoever on your taxable income.
But you get basic rate tax relief added to the pension and your basic rate band is increased by the amount of the gross contribution. So more of your income can be taxed at 20% and less at 40%.
Obviously there are other cliff edges like the reduction to the PSA which may have an impact too.
If you were set on this approach, a better option would be to ask to reduce your hours by an amount that reduces your pay by £1000, at least that way you would actually benefit in some way.
Giving up £1000 salary makes you worse of, pure and simple.0
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