Money Lesson Single

Staying under the line

You did not choose to be a higher rate taxpayer, your pay rise did. In the last few working years the slice above the line is the cheapest money you will ever put into a pension, and the most expensive money you will ever spend.

Employment Expenses ISA Investments

Stay under the line

3 Goals

Sacrifice a bit over a third of pay into the pension, so taxable pay stays below the higher rate threshold to the last working year.

Try this plan

Employment Expenses ISA Investments

Take it as it comes

3 Goals

Leave the pension contribution where it has always been and hand the slice above the line to the taxman.

Try this plan

Stay under the line Take it as it comes

Paying the slice above the line into the pension instead of taking it leaves you ~£98k wealthier, and keeps you a basic rate taxpayer to the end.