9:18 AM, 16th January 2018, About 5 years ago 19
I wonder whether anyone has thought of putting money into a SIPP to mitigate some of the fallout of the way that mortgage expenses are to be accounted for from the current tax year. I appear to be hit hard.
I have a salaried income of 35K, plus 25K in rental income, with 15K in mortgage costs (high leverage from a decade back), and say 5K in annual maintenance.
In the past this was calculated as a total 40K income. From this year, I’ll have a 60K income minus deductions!
Now if I put, theoretically, 20K into a SIPP am I back as a 40K earner and thus basic tax payer?
How does the SIPPs work in terms of such tax accountancy?