Adjusting SS Pension vs Personal Allowance

[Chucklehead]

I'll start by saying I'm overdue finding a proper advisor to sit down to discuss all my money questions, but i have to make a decision on this tonight in order for it to count for my next payslip. Any advice is appreciated.

My (small) annual pay rise has been entirely wiped out by the reduction in my person allowance, so i want to adjust up my salary sacrifice pension contributions equal to my bonus so that i'm net zero on monthly income, but paying more into my pension.

My tax code for this year is through and obviously reflects my person allowance reduction. If i add my bonus to my pension effective May, then will my salary "recalculate" my tax due to give me net effect of zero to monthly income from May on, or will i actually just reduce my income initially and then even out over the year?

I suppose i'm asking if PAYE will (as i would expect) be calculated "AYE", irrespective of my tax code.

Edited by Chucklehead on Thursday 25th April 18:00

[bogie]

On salary sacrifice with PAYE if you bump up your contribution your gross pay comes down but if your tax code has already been adjusted you will need to let HMRC know of your new gross income for the year so they can adjust the code accordingly and give you your personal allowance back. If you have a personal tax account you can send a message online to HMRC, I find this works quite well, they usually respond and adjust my tax code within a month or so. Or just give them a call.

[Chucklehead]

Thanks! I'll make the changes either way, it was just to see whether anything could be done quickly about recovering things for May-on.