another - how much SA pension question
Discussion
Please help answer the riddle for a friend.
PAYE and expecting to have a shortfall in tax deducted for the current year of circa £7k (2022/23).
£40k pension allowance used this year but may have some headroom in prior years.
After utilizing annual allowance in current year expecting taxable income to be ~£125k.
So thinking of making a one off payment into pension fund to off set the expected £7k tax bill.
Is the thinking correct?
Assume prior years tax rate at 40%.
What amount of one off payment would be required?
Much appreciated.
PAYE and expecting to have a shortfall in tax deducted for the current year of circa £7k (2022/23).
£40k pension allowance used this year but may have some headroom in prior years.
After utilizing annual allowance in current year expecting taxable income to be ~£125k.
So thinking of making a one off payment into pension fund to off set the expected £7k tax bill.
Is the thinking correct?
Assume prior years tax rate at 40%.
What amount of one off payment would be required?
Much appreciated.
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