Most tax efficient paye method

Baby01032012

I’ve been offered a 4K pa pay increase through my paye job. I’m on a low 22k so increase to 26k. I will be in receipt of non paye income equal to my total paye income this year. Next year my non paye income could be up to 100k.

My employer has offered to pay me this increase whatever is the most tax efficient way for me. Would a bik or travel allowance etc be more tax efficient than straight salary?

E30M3

Baby01032012 wrote: »

I’ve been offered a 4K pa pay increase through my paye job. I’m on a low 22k so increase to 26k. I will be in receipt of non paye income equal to my total paye income this year. Next year my non paye income could be up to 100k.

My employer has offered to pay me this increase whatever is the most tax efficient way for me. Would a bik or travel allowance etc be more tax efficient than straight salary?

Do you do any work related travel? BIK's are taxable in the same manner as salary.

Darc19

Set up a pension plan and have it put into that.

Baby01032012

Darc19 wrote: »

Set up a pension plan and have it put into that.

That’s a great idea. I don’t need the money so I’ll ask if it could be paid as a monthly contribution to my personal pension. Or maybe health insurance as I don’t have private health insurance with this employer.

Baby01032012

I have an existing personal psra. Can my employer simply contribute to that as a salary deducted psra, then they can claim the amount as a deductible expense and don’t need to pay employer prsi on it. Likewise I don’t need to pay paye prsi or usc on it.