I've just got a pay rise and now earn 38,153 - am I now a 40% tax payer? Also, if I increased my pension contributions by 100 a month, does that mean I'll only actually be paying 60 and the tax man 40?
- posted
19 years ago
40% tax
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- posted
19 years ago
Yes, anything over 31,401 after your allowances are taxed at 40%.
Yes, but what normally happens is 100 is deducted from your pay before tax if you contribute to an employer's scheme or AVC. If you pay into a personal pension, stakeholder or FSAVC, you have to claim your tax relief through your tax return or form PP120.
Alec
- Vote on answer
- posted
19 years ago
Most likely (unless you have some additional allowances/reliefs).
If you are a 40% taxpayer, then the net cost to you of a £100 pension premium is likely to be £60.
Doug Ramage