What is the collective wisdom to avoid the tax trap?
Must admit it’s snuck up on me this year, first time earning £100K+.
Is it as simple as thus:
Earn £110K Gross…
…Overpay pension by £10,100, “taxable income” becomes £99,900.
Fill in a tax return to be relieved circa £6K in income tax?
Therefore disposable cash reduced in theory by approx £4K, but my pension has £10K extra and I’ve given considerably less to HMRC…?