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cjr
Someone help me figure out tax relief on post-tax pension payments?
Higher rate threshold is currently £50271. If a taxable salary (i.e. after workplace SS pension contributions) was, say, £55271, you would be paying the 40% rate on that £5k over the threshold.
If you wanted to "maximise" your tax saving i.e. bring yourself below the 40% rate threshold but not contribute more than you need to to achieve that, would you contribute £5000 to a SIPP? Or is it £4000 because of the basic rate relief you get? I'm getting different answers from different online calculators. I think I'm confused because the relief you get is a combination of extra money that goes into the SIPP automatically, and a refund on the paid tax.