I earn £70,000 gross a year which I calculate to mean I will pay £11,046.00 higher rate tax this year.
I plan to start a pension this year and thought I would maximise the investment by maximising the high rate relief I can receive.
Am I right in thinking I should invest £27615 in order to get £11,046.00 in tax rebated?
I think this means I really invest £22,096 into the pension which receives an instant boost of 20% (£5525) and I then claim a further (£5525) as relief using a self assessment tax form?
If this is the case I will do the same thing again in April 2016 for the following tax year.
Are my sums correct?
Is there a way to do it without being stuck filling out a self assessment tax form each year?
Thanks for your help!
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