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Quick mad question on additional contributions!
Comments
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Where are you getting £65,162 from, that's not far shy of £70k
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If we pay into the DB scheme I'd understood we have to put the full amount in and reclaim all the relief direct from HMRC, hence the £6k (40%) refund; or am I mistaken?
That sounds like a recipe for disaster (based on other threads on here).
How are normal contributions to the DB scheme paid? Salary sacrifice? Presumably it is too late this tax year to use salary sacrifice for the contribution you want to make.
How would the money be applied in the DB scheme? Presumably it won't buy more DB benefits? But are there advantages to having it in the DB scheme - like the tax free lump sum calculation?
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As above, PAYE £43,768, pension income £21,591 and savings interest £4003 = £65,162 total
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My calculator adds that up to £69,362.
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Not on my calculator - more like 69362
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Even if you leave out the savings interest it isn't 65162. Are you maybe adjusting for existing pension contributions?
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Apologies, I'm with you. Gave the gross PAYE instead of the taxable. Try £39,568 + £21,591 + £4003. Sorry.
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Even with those figures I don't see how £14k (gross) will achieve your stated aim of getting down to the basic rate band.
And you seem to be forgetting that £500 of the interest will be taxed at 0%, not 40%.
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I was going on £65,162 - £50,270 (higher rate threshold) = £14,892 (OK, more £15k than £14k)
Re. savings tax, you're right, I was forgetting. It'd be £14,392 taking that into account.
I'm really just trying to confirm the principles though, as much as worrying about exact figures.
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Fair enough.
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