100K

[LHRFlightman]

Hi.

Went out for a curry with an old mate lat night and he's had a job offer with a big salary increase. Made up for him.

He's currently on £80k and this job is £106k plus up to £15k bonus. It's a business development role.

Neither of us are near £100k earnings but we know it's a tax cliff. We were trying to work out how to minimise his tax take. Is it as simple as dumping everything over £100k into his pension and living off the £100k?

What would that give him as a take home salary, compared to taking it all (salary plus bonus) as salary? He's 47 so a way off pension age.

Thanks!

[Claret m]

Put some numbers in here to see the nett benefit


https://www.uktaxcalculators.co.uk

[Mr E]

Marginal tax rate between 100-120k is horrific. Avoid at all costs.

I’d be slinging 25k (at least) per annum into a pension.

[TwigtheWonderkid]

LHRFlightman said:

He's 47 so a way off pension age.

Only 10 years off private pension age.

[Happy Jim]

Dump everything over £100k into pension, and he will still be about £1k a month better off (take home) than he is now!

[mikeiow]

Happy Jim said:

Dump everything over £100k into pension, and he will still be about £1k a month better off (take home) than he is now!

^^^^
This!

[LHRFlightman]

Thanks everyone for links and comments. I've passed him a link to the thread.

[okgo]

Listen to taxman is the best site I’ve found for such questions.

[AyBee]

Get used to not earning more than £100k for many many years and sacrifice everything above into pension until you're on more than £160k, then get a sal-sac car.