PTC - pensions

confoosed

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:

rusbfs44

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

The income is 45k per annum, would the band have gone up in this case?

rusbfs44

Yes so do the usual

2230 x 10%
32370 x 22%
then
1000 x 22%
9400 x 40%

confoosed

Thanks a million