As the tax year comes to an end I am trying to work out how much money I need to put into a pension to get my income to £100k to ensure I don't lose my personal allowance and then have to pay 60% tax on my income above £100k.
As an example:
Gross Salary =£130k
Employee pension contributions through salary sacrifice: £10k
To bring my adjusted net income to £100k do I:
1) need to include the £10k pension contributions I have made through salary sacrifice and then top up the remainder into a private pension? So all I would need to do is put £16k into a private personal pension and I would get relief from HMRC of £4k.
2) Or do I need to exclude the £10k I put in via salary sacrifice and in fact in order to bring my adjusted net income down to £100k I need to put in £24k and then HMRC would give me relief of £6k?
As an example:
Gross Salary =£130k
Employee pension contributions through salary sacrifice: £10k
To bring my adjusted net income to £100k do I:
1) need to include the £10k pension contributions I have made through salary sacrifice and then top up the remainder into a private pension? So all I would need to do is put £16k into a private personal pension and I would get relief from HMRC of £4k.
2) Or do I need to exclude the £10k I put in via salary sacrifice and in fact in order to bring my adjusted net income down to £100k I need to put in £24k and then HMRC would give me relief of £6k?