Tax help

Diagro

Diagro

Diagro

Soldato
Joined
3 Jun 2012
Posts
11,086
Yo peeps

Quick one.

Is it possible to tell an employer to pay ANYTHING above the 50k tax threshold into the already set up Pension plan?
In doing so, reducing the amount of Tax that is paid on the pay above the tax threshold and also as its "pre tax" i'm hoping my student loan payments also wont inflate further to reflect the actual wage... however, I'm not ofay with how the student loan payments are calculated.

I don't see the point in being paid money over the threshold, for only 55% of it to vanish. Especially if I can put that elsewhere and keep 90-100% of it for the future.

Ta
 
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I rewrote the above as it was pretty poorly written. I actually fell asleep 4-5 times when writing it. THAT's how boring Tax is to me lol
 
dlockers said:
Student loans come after tax. If you're repayment plan 1 you're paying low interest anyways.

You'll have to do some man maths - take gross, subtract from 50, divide by months to end of tax year (its only April remember). Your online HMRC account will tell you taxable pay to date, get an account setup and ready. Remember, any expected interest from bank accounts needs to be added to your gross (so even tho it's tax free, it may put you into the higher band lol).

Tell payroll to take that amount divided by 12.

In December recalculate to see if you need to adjust.

In March recalculate and see if you need to adjust. You can do an after tax payment into your pension worst case and claim the tax back.
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I'm in Repayment plan 1, 2 and postgraduate loan, my payments are approx £350-£380 per month.
 
dlockers said:
Oof. You need a proper spreadsheet then. Yes you'll get ding on tax over 50k but if it helps get the student loan plan 2 stuff dinged quicker it may be worth it? Unless it's just growing at a phenomenal rate and no realistic chance of clearing it.
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My total student loan is north of 50k.
It's going to be a LONG time before it's clear.
Heh
 
What bugs me, is that I have to self declare to HMRC that I earn over 50k... which they already know. So that they can force me to pay a £900 lump sum in tax... to repair tax credits.. which they knew I'd have to... and could have spread it across the year...

But that would be logical. And HMRC is anything but Logical.

Might just have a word with finance in January and have them sacrifice 1.1k per month of my jan-april wages into my pension.
Bringing me down to just over 50k, hah no self assessment and £900 in repayments to be made.
Let's see if that's possible.
 
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dlockers said:
You don't have to tell them anything, just anticipate the bill when they catch up.
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Hmm, giving me time to put aside a little into my spare account for when they do? Hmmm. Options.
To be honest, much rather sacrifice the pay and utilise it when the kids have flew the nest haha
 
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