Pension contributions can be used to relieve LC19

[webberg]

As was observed by others above, unless your income is less than the personal allowance in 18/19 then tax will be due at the basic rate.

The pension contribution simply extends the BR band.

[starstruck]

Try this calculator.

https://www.uktaxcalculators.co.uk

Put in £40,000 income. Pension £0. Note the tax due is £5,700.

Next put in £28,500 pension. Tax due is £0. (pension relief is £5,700)

Yes I see. So the two calculators differ on the same amounts! Wonderful.

So, which one is correct?

EDIT - trying others online looks like the Crunch one is saying something different to the rest.

[Loan Ranger]

As was observed by others above, unless your income is less than the personal allowance in 18/19 then tax will be due at the basic rate.

The pension contribution simply extends the BR band.

Yes, but the pension provider claims back the basic rate.

So, the net result is you won't have paid any tax.

[webberg]

The calculator from Hargreaves Lansdown is pretty user friendly.

[starstruck]

The calculator from Hargreaves Lansdown is pretty user friendly.

Link?

[Loan Ranger]

Yes I see. So the two calculators differ on the same amounts! Wonderful.

So, which one is correct?

EDIT - trying others online looks like the Crunch one is saying something different to the rest.

If the one I posted is correct, then to pay no tax* you need to make a pension contribution of

total income - personal allowance

* Any tax you do pay through self-assessment, which will be at basic rate, will be reclaimed by the pension provider. Hence zero tax to the exchequer.

[Delendog]

If the one I posted is correct, then to pay no tax* you need to make a pension contribution of

total income - personal allowance

* Any tax you do pay through self-assessment, which will be at basic rate, will be reclaimed by the pension provider. Hence zero tax to the exchequer.

From my calculations £130k pension contribution is the max you could use in 2019 taking £40k for each of the previous 3 years if unused + £10K for 2019 as the allowance for that year will be reduced for all income over £110K.

[webberg]

Link?

FREE online pensions calculators | Hargreaves Lansdown

[starstruck]

FREE online pensions calculators | Hargreaves Lansdown

Yeah I found that, am I being dumb .. which one is it? I couldn't see one for income tax.

So loan of £100K
Salary of £11.5k
Pension of £100k (paid as 80k cash - pension provider claims the extra 20k)

What is the tax due?

[starstruck]

From my calculations £130k pension contribution is the max you could use in 2019 taking £40k for each of the previous 3 years if unused + £10K for 2019 as the allowance for that year will be reduced for all income over £110K.

I think you can pay more than 130k - Look at this - case study 2

https://adviser.royallondon.com/tech...-high-incomes/

Pension payments made are taken off income when calculating the threshold income