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  • FIRST POST
    • stoozie1
    • By stoozie1 13th Mar 17, 9:57 AM
    • 181Posts
    • 79Thanks
    stoozie1
    Very low earnings, but reduced personal tax allowance, maximum SIPP contribution?
    • #1
    • 13th Mar 17, 9:57 AM
    Very low earnings, but reduced personal tax allowance, maximum SIPP contribution? 13th Mar 17 at 9:57 AM
    Hi I think my total earnings for 16/17 will be 2750, but I have a reduced personal tax allowance due to giving 10% to my partner.

    I have received conflicting advice from the 2 SIPP providers I was debating about how much I can therefore contribute into a SIPP for 16/17. (this may have been because I worded the question incorrectly, the advisers were very helpful, I'm just a noob!)

    Can anyone advise?

    Many thanks in advance.
    Last edited by stoozie1; 13-03-2017 at 10:46 AM.
Page 1
    • Dazed and confused
    • By Dazed and confused 13th Mar 17, 9:59 AM
    • 1,264 Posts
    • 504 Thanks
    Dazed and confused
    • #2
    • 13th Mar 17, 9:59 AM
    • #2
    • 13th Mar 17, 9:59 AM
    Do you mean personal tax allowance and what is your nationality/residency status for tax purposes?
    • stoozie1
    • By stoozie1 13th Mar 17, 10:03 AM
    • 181 Posts
    • 79 Thanks
    stoozie1
    • #3
    • 13th Mar 17, 10:03 AM
    • #3
    • 13th Mar 17, 10:03 AM
    Yes.

    I am a British citizen for all purposes including tax.

    I'll amend my OP now, thank you.
    • Dazed and confused
    • By Dazed and confused 13th Mar 17, 10:15 AM
    • 1,264 Posts
    • 504 Thanks
    Dazed and confused
    • #4
    • 13th Mar 17, 10:15 AM
    • #4
    • 13th Mar 17, 10:15 AM
    If you are a British citizen why don't you get a personal allowance?
    • stoozie1
    • By stoozie1 13th Mar 17, 10:16 AM
    • 181 Posts
    • 79 Thanks
    stoozie1
    • #5
    • 13th Mar 17, 10:16 AM
    • #5
    • 13th Mar 17, 10:16 AM
    I've ported it to my partner.
    • Dazed and confused
    • By Dazed and confused 13th Mar 17, 10:18 AM
    • 1,264 Posts
    • 504 Thanks
    Dazed and confused
    • #6
    • 13th Mar 17, 10:18 AM
    • #6
    • 13th Mar 17, 10:18 AM
    Impressive. Would love to know how you've managed that, sounds quite futuristic, sci-fi almost
    • stoozie1
    • By stoozie1 13th Mar 17, 10:21 AM
    • 181 Posts
    • 79 Thanks
    stoozie1
    • #7
    • 13th Mar 17, 10:21 AM
    • #7
    • 13th Mar 17, 10:21 AM
    I've probably used the wrong wording! I've applied for Marriage Allowance and now have an N tax code.
    • xylophone
    • By xylophone 13th Mar 17, 10:26 AM
    • 21,298 Posts
    • 12,226 Thanks
    xylophone
    • #8
    • 13th Mar 17, 10:26 AM
    • #8
    • 13th Mar 17, 10:26 AM
    I've ported it to my partner.
    Can you explain this please?

    On other posts you seem to be saying that you (your wife/both?) are a 40% tax payer (s)?

    Can you clarify:

    Are you employed?

    Is your wife employed?

    Are you both already members of occupational pension schemes?



    You mention children in another post - are you attempting to reduce ANI so as to claim CB/TC?
    • stoozie1
    • By stoozie1 13th Mar 17, 10:35 AM
    • 181 Posts
    • 79 Thanks
    stoozie1
    • #9
    • 13th Mar 17, 10:35 AM
    • #9
    • 13th Mar 17, 10:35 AM
    Can you explain this please?

    On other posts you seem to be saying that you (your wife/both?) are a 40% tax payer (s)?

    My partner would be a 40% payer if we didn't make additional pension and gift aid contributions.

    Can you clarify:

    Are you employed?

    Yes

    Is your wife employed?

    He is. He is also self-employed. (sorry for complexity!)

    Are you both already members of occupational pension schemes?

    Yes, but mine is deferred and I am not currently paying into anything.

    You mention children in another post - are you attempting to reduce ANI so as to claim CB/TC?

    we are in receipt of CB, unsure about eligibility for CTC but it looks likely that for 16/17 and 17/18 we are.
    Originally posted by xylophone
    responses in bold and italics, hopefully!
    • mgdavid
    • By mgdavid 13th Mar 17, 10:37 AM
    • 5,156 Posts
    • 4,328 Thanks
    mgdavid
    I've probably used the wrong wording! I've applied for Marriage Allowance and now have an N tax code.
    Originally posted by stoozie1
    I thought one could only transfer 10% of the Personal allowance to a partner?
    https://www.gov.uk/apply-marriage-allowance
    A salary slave no more.....
    • Dazed and confused
    • By Dazed and confused 13th Mar 17, 10:40 AM
    • 1,264 Posts
    • 504 Thanks
    Dazed and confused
    It's no wonder you got different answers given the way this thread has gone.

    If you genuinely don't get a personal allowance (unlikely for a Brit) how have you managed to give 10% of it to your spouse????

    That's the problem with some of these threads, simply insufficient or incorrect details to start with which makes it difficult for anyone to give any help which may be of use
    • stoozie1
    • By stoozie1 13th Mar 17, 10:43 AM
    • 181 Posts
    • 79 Thanks
    stoozie1
    I thought one could only transfer 10% of the Personal allowance to a partner?
    Originally posted by mgdavid

    Thank you. I can see my mistake now. Does this mean I can still make 2880 of contributions?
    • stoozie1
    • By stoozie1 13th Mar 17, 10:45 AM
    • 181 Posts
    • 79 Thanks
    stoozie1
    It's no wonder you got different answers given the way this thread has gone.

    If you genuinely don't get a personal allowance (unlikely for a Brit) how have you managed to give 10% of it to your spouse????

    That's the problem with some of these threads, simply insufficient or incorrect details to start with which makes it difficult for anyone to give any help which may be of use
    Originally posted by Dazed and confused
    I'm trying to amend my OP to add the extra information as I realise it's needed.
    • xylophone
    • By xylophone 13th Mar 17, 11:22 AM
    • 21,298 Posts
    • 12,226 Thanks
    xylophone
    You are married with children and have a deferred pension from a previous employment.

    You do have a personal tax allowance (11,000 rising to 11,500 in 2017-18).

    You have chosen to take advantage of the Marriage Allowance arrangement so that 10% of your PA is transferred to your spouse ( who is eligible because he has reduced his ANI as below).


    Your "relevant earnings" are under 3600 a year - you may pay up to 2880 into a personal pension scheme and receive tax relief of 720.

    https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2017-18/tax-and-tax-credit-rates-and-thresholds-for-2017-18

    http://adviser.royallondon.com/technical-central/pensions/contributions-and-tax-relief/annual-allowance/

    http://www.pruadviser.co.uk/content/knowledge/technical-centre/tax_relief_members_contributions/

    Your spouse is both employed and self employed and would be paying tax at 40% if he did not make pension contributions/charitable donations to reduce his ANI.
    • stoozie1
    • By stoozie1 13th Mar 17, 11:28 AM
    • 181 Posts
    • 79 Thanks
    stoozie1
    Thank you xylophone, I will set that up now and apologies for my unclear wording.
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