for the 2014/2015 tax year so far my last payslip shows:
taxable pay 108,897
tax paid 34,142
tax code 651L (should be 760L - reclaiming the £1066 child benefit owed for 2013/14)
Unfortunately, HMRC don't seem to have the 2014/2015 self assessment calculator online right now or I'd check through that.
I'm married but in 1990 so no married allowance there and assuming no other significant allowances.
I want to reduced my tax liability so that I don't lose my personal allowance due to taper.
From my calculations it would appear that I should pay (gross) £8897 into a SIPP (i.e. £6608 net.) to reduce my table pay to £100k and hence avoid any tapering.
If I ignore the tax code for a moment and assume a personal allowance of £10k, I can then claim a tax refund of £4515 and a pension payment refund of £1779.
So total reclaim would be £5228 ( £4515 - £1088 + £1779 )
Hope that's clear.
Just need to know that that is correct before I go and put £6608 into my pension.
I hope this is helpful and answers your question.
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OK. That's good to know. Thanks for that.
I could make it up to 10k. Could I ask you for the logic given, I assume, I only need to pay-in the £8900 to avoid any taper?
I've already paid a lump in anyway so I think with the extra that'll be more than enough.
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