u/givemeapropername

Advice from teachers who pay higher rate tax

I asked a question about pensions on r/UKpersonalfinance and was left with more questions than answers! Looking to see what others in a similar position have done.

I will be a higher rate tax payer for the first time in September. I’ve just had a decent pay rise up to 62k, so will pay some higher rate tax this year.

It seems like my options are:

1. Pay the higher tax and do nothing.
2. Open a private SIPP - this is what I was originally going to do. It seems like this is a more flexible option. I don’t think I will be able to be in education in my 60s.
3. Faster accrual through TPS. When I looked into this before, it didn’t feel like a great option. Happy to be proved wrong.
4. AVCs - I had not heard of this before.

So - what did you do/what would you do? Keen to hear other people’s opinions on this.

Thanks!

Have looked around the internet and have had some contrasting responses. So, I want to check that I’m on the right track with things.

In September I will be on £62,000 and pay higher rate tax for the first time. My plan is to open a SIPP (any recommendations?) to avoid this. Other information:
10.5% pension contributions to teachers pension.
Will have access to 30 free childcare hours in September for my daughter.
Wife works part time, also as a teacher.
Currently paying £700 into a S&S ISA. Will reduce this once I open the SIPP.

If I contribute £3k into a SIPP - will I avoid paying the higher rate tax?
Some calculations I’ve done online have said it’d need to be £5/6k. I’m aware this money will be locked away.