Paying lump sums into a pension?

cheghead

Firstly is it risky paying lump sums up to the maximum amount allowed each year?
As you get tax relief added to the lump sums what's stopping someone from removing the whole amount after April 2015 and taking the tax relief with it assuming it was your only income and the pension totalled less than £10k (therefore using your tax allowance for the year)?
Or would the tax have to be paid back?

Triumph13

There's nothing to stop you doing it, but it only really works in the year you retire. To get all £10k out tax free after April 2015 you would need to have no other taxable earnings. To be able to put it in in March 2015 you would need to have had at least £10k of earnings as contributions are limited to the higher of £3,600 or total earnings (excluding pensions, investment income etc).


Unless you plan to just work every other tax year