Please note, the information presented in this page is for illustrative purposes only and does not constitute tax advice or recommendations.
It’s often thought that the highest UK tax rate is 45% but that’s not the case; a quirk in the system means that anyone earning between £100K and £125K can find themselves paying a whopping 60% tax on this portion of their earnings. Thankfully there are two ways this could be avoided via pension contributions.
You pay into your pension
You take home
(You pay £0 in tax)
Increasing your monthly pension contribution to the maximum annual allowance of £40,000 per year can reduce your income tax liability.
This calculator is for guidance only, and tax treatments depend on your personal circumstances. If you’re unsure if a pension is right for you, please seek financial advice.
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