allergic to HR

[MrC]

Ok so first things first I'm allergic to paying HR tax.

This is a long-standing allergy I've been able to keep in check.

But recently I'm nearing maxing out my pension contributions AA and carry forward and am facing the stark reality of a mere 55% retention on the entirely of my income.

just wanted to check if there are any legit ways to mitigate HR tax that are left after pension options are exhausted?

Only thing I'm vaguely aware of is VCTs but don't know much about the pros and cons

[northernladuk]

Have you asked your accounant? If you do maybe make sure the subject of your email is a little clearer.

[eek]

Ok so first things first I'm allergic to paying HR tax.

This is a long-standing allergy I've been able to keep in check.

But recently I'm nearing maxing out my pension contributions AA and carry forward and am facing the stark reality of a mere 55% retention on the entirely of my income.

just wanted to check if there are any legit ways to mitigate HR tax that are left after pension options are exhausted?

Only thing I'm vaguely aware of is VCTs but don't know much about the pros and cons

Assuming by HR tax you mean Employer and Employee NI then once you've used up your annual (and historic) pension allowance nothing else is going to work.

[MrC]

Assuming by HR tax you mean Employer and Employee NI then once you've used up your annual (and historic) pension allowance nothing else is going to work.

I mean deductions of all flavours/names ie income tax, employers and employees NI, even apprentice levy, especially the rates you pay when over the 50K of gross income.

I didn't think there was anything but just rather desperately hoping i was badly informed

[MrC]

speaking of maxing out your current and historic (carry forward) pension annual allowance - is there an easy and robust way of working out your remaining allocation/carry forward position?

Thus far i've resorted to keying into spreadsheet calculators and having to sum contributions to multiple pension providers from multiple employers and given the cumulative nature of the calculations a single error anywhere would likely cause the current position to be miscalulated.

I understand HMRC won't tell you your position (although presumably they know or have the means to quickly derive it).

And no, as a employee-like worker I don't have an accountant any longer.

[Protagoras]

speaking of maxing out your current and historic (carry forward) pension annual allowance - is there an easy and robust way of working out your remaining allocation/carry forward position?

You do need to know the annual contributions from the various sources, but once you've added these up there is the option of using an on-line calculator to check one's own calculations.

e.g. https://www.hl.co.uk/pensions/contri...nce-calculator

[WTFH]

And no, as a employee-like worker I don't have an accountant any longer.

Just because you are an "employee-like worker" doesn't ban you from having an accountant. That is just ridiculous.
In fact based on this thread and the terminology you choose to invent/use in it, you need one, or at least an IFA to help you.

[eek]

And no, as a employee-like worker I don't have an accountant any longer.

Yoiu also need to know the purposes of the taxes you refer to as Employer taxes and what the payment terms of those items are.

Because Income tax isn't an exployer tax it's a personal tax that is collected via PAYE for all round convenience (both for workers so they don't end up with nasty £x,000 bills come April and HMRC's).

[jamesbrown]

speaking of maxing out your current and historic (carry forward) pension annual allowance - is there an easy and robust way of working out your remaining allocation/carry forward position?

https://www.tax.service.gov.uk/pensi...nce-calculator

[MrC]

https://www.tax.service.gov.uk/pensi...nce-calculator

Yes, came accross this once before but while it may give you some confidence (or defence if they're wrong) against the calculations it's still reliant on accurately entering every last contribtuon from the last few years. Given multiple providers, personal and co contributions and transfers between providers this isn't as straightforward as some might think.

Don't really like the nature of the data aquisition given that I'm sure they already have the information anyway. Seems like an opportunity to dob yourself in with their psuedo lie-detector test