PTC - pensions

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confoosed
confoosed Registered Posts: 38 Regular contributor ⭐
I'm going over an old paper from June 2008 and I can't remember what happens when it's a Private pension scheme, rather than occupational. The amount (£195 per month from 1st Jan of the tax year) doesn't seem to be put anywhere in the computation in the answer, but it must be. Is this where you move the tax band (which confuses me a bit!).
Thanks anyone.:confused1:

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  • rusbfs44
    rusbfs44 Registered Posts: 8 New contributor 🐸
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    PPP contributions only apply where the income reaches the upper band.
    You extend the middle band by Gross Pension Amount

    Net / 0.78 eg. £195 for 4 months / 0.78 = £1000

    So middle band goes up by 1000 to 35600.
  • confoosed
    confoosed Registered Posts: 38 Regular contributor ⭐
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    The income is 45k per annum, would the band have gone up in this case?
  • rusbfs44
    rusbfs44 Registered Posts: 8 New contributor 🐸
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    Yes so do the usual

    2230 x 10%
    32370 x 22%
    then
    1000 x 22%
    9400 x 40%
  • confoosed
    confoosed Registered Posts: 38 Regular contributor ⭐
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    Thanks a million
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