Stuart

If you’re not employed, do not get a pension or do not complete Self Assessment, your bank or building society will tell HMRC how much interest you received at the end of the year. HMRC will tell you if you need to pay tax and how to pay it.

I have a question regarding the 60% tax trap and whether some of my earnings may fall into this boundary. I'm not self employed, work for a large company and I'm paid via PAYE. If I earn 110000, salary sacrifice 10000 into my pension, salary sacrifice 700 buying 2 additional days vacation, receive 1500 of medical benefit-in-kind and 500 interest on savings (non-ISA) will I be pushed into the 100000 to 125140 tax bracket? I believe I will because 110000-10000-700+1500=100800. I assume I won't need to add the 500 savings interest as it's below the 500 threshold for 40% tax payers. Thanks