Re: Only for the pension?
Ah, here you go again with your 'woe is me, I'm just about surviving on a salary larger than that of 95% of the population'. Your calculation is disingenuous, you present all your figures and then talk about lopping off 30k for a pension from that, but then present figures of paying full tax on the entire income. You don't pay tax on pension contributions, and the annual limit is 60k. So, if you are earning 160k , you should always ensure that you maximise your pension contributions (and any other salary sacrifice schemes in the workplace) to prevent your salary breaching to 100k cliff edge where you lose the annual allowance and kiddy bonus. This returns your rights to have the rest of the country pay towards the raising of your kids via tax credits/refunds, means that the highest percentage tax rate you pay will be 40%, and gives you a monthly take-home of £5700. I don't have kids, and pay the same rate of tax as everyone else, but I'm not bleating about being pillaged by the taxman, because we ALL have to pay for the society in which we live. No matter what your situation (kids/london or other things), if you can't survive on 5700 per month (one parent's salary BTW), then it's not the tax system or your employer that's the problem.