Put into SIPP or Make Charitable donation

[MrSmith901]

Hi All,

I have posted before about this but it has now come to a head so to speak.

On the 15th of March my net adjusted income will flip over £100k, probably only by £1000 or less but it will go over. It is too late to get payroll to do anything now as I have missed cut off.

SO, after I have been paid, if I stick £1000 into a SIPP does that solve the problem? I called Hargreaves Lansdown and they seemed to suggest it would need to be done by salary sacrifice which is a non option as I have missed payroll cut off and if I just do it out of my own money after I have been paid it won't come off my net adjusted income? Is this correct?

Alternatively, if I make a charitable donation of £1000, will that solve my problem?

I am only doing this to keep the free 30 hours child care for a few more months, after that, I will stop caring so much.

[PistonHead007]

Salary sacrifice is preferred but not required. It lets you get the full tax relief up front and not have to go through a tax return to get the extra relief back.

If you put £800 in a pension as a personal contribution then the scheme will reclaim £200 to make £1,000 gross and you'll get back to under £100,000 of taxable income. The rest of the tax relief you'll get back later as a refund into your pocket.

[MrSmith901]

Thanks.

Does anyone know how lenient the free child care people are?

We obviously ticked no when asked if we expected my taxable income to go over 100k this tax year but due to getting a bigger bonus than expected that is no longer the case.

[supersport]

It won’t be if you put that money into a SIPP.

[jinkster]

As it is between tax years, can you add more to the pension in March payday before the end of tax year?