Salary Equation to meet 20% Tax

[James6112]

Hi

Around 60 & keen to pay as little tax as possible from now & boost the current pension..

Can work a few more years or get a good payout of a years salary when i’m obsolete. Hopefully.

A couple of legacy DB pensions amounting to 12k
Plus a few hundred K parked in HL

So £12k incoming on pensions nowish

What can I reduce me current salary to, then put the rest into current pension to avoid 40% (say 200k there now)
I guess 38k then put the rest into salary sacrifice ?

Then how do I reduce the tax on pensions to 20%. A call or a tax return next year?!

New pot say £200k but a boost would be good ..

Edited by James6112 on Wednesday 29th March 23:44

[TwigtheWonderkid]

Surely you just have to bring your earnings, after pension contributions, down to £50K?

[bompey]

Hopefully you’re not taking any the pensions yet. The easiest thing would be not to draw the £12k otherwise the amount you can contribute to a pension is limited.
You need specialist advice.
You could salary sacrifice up to £60k gross of salary each year now and live off your HL money instead.

[Kirkmoly]

TwigtheWonderkid said:

Surely you just have to bring your earnings, after pension contributions, down to £50K?

The 12k dB pension will use up his allowance so ~38k is correct.

[Kirkmoly]

bompey said:

Hopefully you’re not taking any the pensions yet. The easiest thing would be not to draw the £12k otherwise the amount you can contribute to a pension is limited.
You need specialist advice.
You could salary sacrifice up to £60k gross of salary each year now and live off your HL money instead.

Drawing a dB pension doesn’t trigger the Mpaa.

[Kirkmoly]

Kirkmoly said:

bompey said:

Hopefully you’re not taking any the pensions yet. The easiest thing would be not to draw the £12k otherwise the amount you can contribute to a pension is limited.
You need specialist advice.
You could salary sacrifice up to £60k gross of salary each year now and live off your HL money instead.

Drawing a dB pension doesn’t trigger the Mpaa. Is there some other rule that would limit contributions?