Vivek Vijayan

Thanks Clive for the detailed response.

So, she would have to pay 20% tax on 56,270 - 12570 = 43700, rather than 50270-12570 =37700 ?

My wife is a self employed person. She earns around £80,000 as annual income. Her Taxable income will be 80000-12570 = 67340 She doesn't have an employer pension, so if she contributes £6000 annually towards personal pension plan, will her taxable income be reduced from 67340-6000 = 61340 ?