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Now a higher rate tax payer, anything I should know?

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I have just got a new job which has put me in the higher rate tax bracket for the first time.

My salary is £56k, minus 5% salary sacrifice for pension, with annual bonus of 20%.

Is there anything obvious I should know or do in order to minimise my tax? I'm guessing the only thing I could do is salary sacrifice even further by increasing pension contributions?
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Comments

  • cloud_dog
    cloud_dog Posts: 6,321 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Pretty much.

    Any other BIK to be taken into consideration (health insurance, car, etc etc)
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • Yes I get a health plan which is about £9 a month BIK.

    Also £6k of my salary is a car allowance.

    I don't get any other benefit or subsidy.
  • For anything that you gift aid you will be able to claim 20% back on your self-assessment. Always look for this option on memberships, entrance fees, sponsorship
  • zagfles
    zagfles Posts: 21,398 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Claim tax back on any gift aid contributions. This can include days out eg at the zoo, national trust etc.

    Do you get marriage allowance transfer or child benefit (you or partner)? You'll lose both (child ben partially) unless you get yourself down to basic rate eg through pension contributions.
  • zagfles
    zagfles Posts: 21,398 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    gdrforest wrote: »
    For anything that you gift aid you will be able to claim 20% back on your self-assessment. Always look for this option on memberships, entrance fees, sponsorship
    25% (it's 20% on the gross, 25% of the net).

    Gift aid rules say for one off fees where you get something, eg entrance to the zoo, they have to charge you 10% more - this is worth doing if a higher rate taxpayer as you get 25% back.
  • redpete
    redpete Posts: 4,734 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Charitable donations? Does your company offer sharesave or similar?
    loose does not rhyme with choose but lose does and is the word you meant to write.
  • MDMD
    MDMD Posts: 1,552 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    Don’t forget to add in any interest, dividends etc not in an ISA.

    You need to include them if you are planning to Sal Sac down to the BR threshold.
  • lisyloo
    lisyloo Posts: 30,077 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I don’t know what your employer is contributing to your pension or how old you are but 5% is not very much.

    Pension salary sacrifice is a good deal because you get tax and employees NI.
    If you are lucky your employer may also pass on employers NI.
    This is quite easy to check.
    Compare your deduction with what’s been contributed to your pension (minus employers contribution).
    If your contribution is increased by 13.8% then they’ll passed it on in full.
    I had one employer do half i.e. 6.9.
  • vanderbosch
    vanderbosch Posts: 6 Forumite
    First Post
    edited 16 January 2020 at 7:23PM
    I am 31, and my employer contributes 4%, which I think is about average for private sector?

    I could put more in but at the same time I would prefer to overpay the mortgage. Having said that, now I'm a higher rate tax payer it may be sensible to pay more into my pension.
  • Prism
    Prism Posts: 3,847 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    I am 31, and my employer contributes 4%, which I think is about average for private sector?

    I could put more in but at the same time I would prefer to overpay the mortgage. Having said that, now I'm a higher rate tax payer it may be sensible to pay more into my pension.

    Thats what I did. I haven't paid any higher rate tax for around 20 years now by contributing to a pension. Even though I could pay off the mortgage now I have just renewed a 5 year fixed deal.
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