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Posted Tue, 20 Feb 2024 16:17:14 GMT by
Hello I have a question Higher Rate Tax Relief On Pension Contributions. As now I am married to my wife who has little girl. I would like to limit what I earn and stay under the £50000 to keep the child benefit going and don’t owe any of that back. I work two jobs, one of them is a retained fireman but adding to this I have a property I rent out also. Both of them can alter up and down depending on things happening. Because of the house i self-assessments forms. I feel this year I will earn collectively around £52,000. Obviously when get to end of March. I will use figures from final pay packets showing taxable income for the year and go from there. If using £52k as the figure of earnings, to keep me below the £50k I will overpay into pension but how much is having to put in to keep me below the 50k figure. If put £1,600 into a pension from money already paid and taxed to me would add the £400 basic tax relief. Resulting in £2000 contribution. As earning above the £50270 the last £1730 would be 40% higher rate. So can i claim back up to an extra £346. Making a pension contribution of £1254 money already paid and taxed, would also result in the £2000 contribution. Whichever is correct I will pay that amount in pension and put the figure In. I will add it to box 3 in the Tax relief (pensions) section.
Posted Wed, 21 Feb 2024 15:40:13 GMT by HMRC Admin 5
Hi

It would be the grossed up pension contribution figure that you would deduct. Further details on adjusted net income at Personal Allowances: adjusted net income

Thank you
Posted Thu, 22 Feb 2024 09:57:25 GMT by Ivan Lintin
Thank you Admin 5, Ok i put in box 3 tax relief section is the grossed up amount by my additional contribution. but question was really regards if i earn £52000 next tax year. The £2000 i need to overpay into my pension. Is it a £1600 contribution out of my bank, With the 20% tax relief making it £2000. Or because earning £52000 that £2000 is a higher tax amount. Resulting the if i contribute £1254 out my bank. with the additional tax relief it would be £2000 pension contribution. Thanks
Posted Mon, 26 Feb 2024 15:28:15 GMT by HMRC Admin 19
Hi,

It would be £1600 contribution as it has been grossed up to £2000.

Thank you.

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