Top rate tax question

[FluffySheep]

Hi all

Long one, and a specific question, I'm not certain if you lot will know the certain answer or be able to direct me to it.

I work as a teacher, and my pay now will be £51,742pa, with the top rate tax bracket in Wales kicking in at £50,271. My tax code is 1394 due to married tax allowance, WFH and other bits and bobs (all legit, I'm happy for the tax man to question this!). When the new tax year hits in April I'll be ineligible for marriage allowance as I'll be a top rate tax payer. As I'm just over the threshold it means my pay will drop more than I'll get from the pay rise because of the increase in tax and loss of tax benefit. My idea (from someone I know) is to start Added Voluntary Contributions (AVCs) to my public pension. If I pay £1500pa this drops me below the 40% tax bracket and I keep marriage allowance, get another (small) pension when I retire and generally be better off. Does this all make sense and I know it's legal to have AVCs, but will it muster past the tax man? Will I get to April 2026 with a surprise tax bill somewhere I missed?

Thanks in advance
FluffySheep

 

[FluffySheep]

Check which way you're paying your pension - there's a chance it's salary sacrifice, in which case it makes sense to permanently alter that going forward rather than AVCs, as you'll then save on NI as well.

Standard teachers pension isn't salary sacrifice so can't use that, but thanks all. Nice to get confirmation about what I thought. Never been near being a top rate tax payer before this year...only a bog standard PAYE

FluffySheep

 

[FluffySheep]

The next nasty one is when reaching 100k

No risk of that in teaching...

FluffySheep

 

[FluffySheep]

Now I've finally made it in these forums...a thread name request and a Gucci belt reference. Only need a request for a photo of my payslip with a loaf of bread and I've got the triple

FluffySheep