Hi there,
We are jointly assessed for tax, Im currently paying the maximum of 35% into my pension for my age.
Wife pays 200 per month, she could pay 35% also, but she's a 20% taxpayer so hasn't been doing so.
Its only recently dawning on me, I hope this is correct, that as we are jointly assessed, we could contribute more for her, and we would get the benefit, I presume at year end, when we file a tax return.
If this is correct, is the most sensible thing to do is make an additional lump sum payment to her pension company in December, for the difference between her 200 per month, and the 35% she can contribute of her salary, then file a tax return, and that would generate a refund in January? Or should it be paid by her monthly via salary deduction?
is it correct to say, looking at this calculation attached, she could pay in a further 7100 (9500 less 12 x 200 per month) and wipe out our joint 40% tax liability?
Thanks in advance.
We are jointly assessed for tax, Im currently paying the maximum of 35% into my pension for my age.
Wife pays 200 per month, she could pay 35% also, but she's a 20% taxpayer so hasn't been doing so.
Its only recently dawning on me, I hope this is correct, that as we are jointly assessed, we could contribute more for her, and we would get the benefit, I presume at year end, when we file a tax return.
If this is correct, is the most sensible thing to do is make an additional lump sum payment to her pension company in December, for the difference between her 200 per month, and the 35% she can contribute of her salary, then file a tax return, and that would generate a refund in January? Or should it be paid by her monthly via salary deduction?
is it correct to say, looking at this calculation attached, she could pay in a further 7100 (9500 less 12 x 200 per month) and wipe out our joint 40% tax liability?
Thanks in advance.
Attachments
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