I'm separating from my partner and trying to get all of my financial ducks in order and would really appreciate some advice on pensions and higher rate tax.
I currently work 80% (4day week) but want to go up to 90% (9 day fortnight). However the increase in salary would push my gross annual salary into the higher rate tax band by £1100. As I buy childcare vouchers, this shift would substantially reduce the amount I can claim.
I make pension contributions of 8% of my monthly gross income via salary sacrifice. Am I right in thinking that my taxable income is calculated on the basis of gross income minus the pension salary sacrifice? My 90% salary less an 8% ss pension contribution would bring my annual income under the higher rate tax threshold by £3k.
I should add I'm not trying to avoid paying my fair share of tax, but just want to be as financially secure as possible right now.