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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4096
Experience:  FCCA FCMA CGMA ACIS
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Regarding tapered annual allowance 2016/17My Basic Income

Customer Question

Regarding tapered annual allowance 2016/17My Basic Income is: £110,000
Bonus: £70,000
Employer pension contribution £12,000
My pension contributions by salary sacrifice £24,000What would be my new tapered annual allowance for the 2016/17 tax year?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Is the basic income figure quoted net of your pension contribution salary sacrifice? Once I know this I can advise you further.
Customer: replied 1 year ago.
Hi Keith, The basic income figure is Gross. Thanks
Expert:  bigduckontax replied 1 year ago.
You taxable income is 110K + 70K - 24K = 156K. For incomes above 100K your personal allowance is progressively with drawn at the rate of one pound for every two quid over. You are 56K over so you would loose your entire personal allowance. The change point where you loose you allowance entirely is 121.2K in the current tax year and 122K next tax year. You will have no personal allowance to offset taxation. I am so sorry to have to rain on your parade.