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Old 17th Feb 2023, 07:15
  #23 (permalink)  
maxdiscretion
 
Join Date: Feb 2023
Location: Up North
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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…?
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