Chris Waz

Apologies, I realise there was a typo in the preceding post at the end. Please see the correct post below: Thanks for this. Apologies but I think I asked slightly the wrong question. What I am trying to make sense of is the number in my tax code. If a "normal" tax code is 1257L and mine is, say, for ease, 1357L I understand that this is because an additional £1000 is being treated as tax free for pension contributions. But where doesthe £1000 come from is it; a) the net contributions (i.e what is actually paid in by me each year) b) the annual contributions grossed up by 20% c) the annual contributions grossed up b 40% d) something else?

Thanks for this. Apologies but I think I asked slightly the wrong question. What I am trying to make sense of is the number in my tax code. If a "normal" tax code is 1257L and mine is, say, for ease, 1357L I understand that this is because an additional £1000 is being treated as tax free for pension contributions. But where doesthe £1000 come from is it; a) the net contributions (i.e what is actually paid in by me each year) b) the annual contributions grossed up by 20% c) the annual contributions grossed up b 40% d) something else? c) the contr

I'm trying to understand the maths behind the amount my personal allowance is increased by to reflect my personal pension contributions. If I am a higher rate tax payer and contributing £3,061.36 per annum the increase in personal allowance should presumably be this amount grossed up by 40% i.e. £3,061.36/(1-40) =£5,102.27 Is that correct?