Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 30 Aug 2024 12:47:01 GMT by alick84
I have received a promotion meaning my annual gross income will now be £100k. I currently pay into a salary sacrifice scheme for a car, which monthly deductions from my pay of £560 before tax, so annually a reduction in pay of circa £6,700. Should this be taken into account when reconfirming in the next tax year (this tax year will still be below the £100k threshold) i.e. that my taxable income for that tax year will be below £100k? Also, if I opted to increase my pension contributions (which are applied before tax) will this also reduce my taxable income?
Posted Wed, 18 Sep 2024 09:49:26 GMT by HMRC Admin 21 Response
Hi alick84,
Yes this will be taken into account when calculating your adjusted net income.
Yes if the pension contributions are made before your tax is calculated then if increased this will change your adjusted net income Personal Allowances: adjusted net income.
Thank you.

You must be signed in to post in this forum.