AA - SIPP help Please.

bitofatit

I finished work at 58 at end of December and was thinking to get as much cash into a SIPP before the end of the Tax year. After this year I will likely have no more earned income.

So I have a DB pension in payment from a previous employment and will get another small DB one for my last job.

I don't think I'm troubled with the Annual allowance. I was on a BR tax code with my last employer. My P45 shows at employment end Pay to date was £11,300.35 and Tax they paid for me as £2,260.00

Based on the above can someone advise -

a) How much I could put into a SIPP (I know ppl say 100% but what does that actually mean!).

b) Is this a good idea? I'll be using some cash and some from an ISA - the SIPP would be part of a medium to LT pension strategy.
Thanks in advance.

jamesd

a) £11,300.35 gross , £9,040.28 net paid in, 25% will be added to give basic rate tax relief and get to the £11,300.35 gross value. Deduct any contributions made so far during this tax year from this.
b) yes. You'll have access to the pension money whenever you need it because you're at least 55 years old.

bitofatit

jamesd wrote: »

a) £11,300.35 gross , £9,040.28 net paid in, 25% will be added to give basic rate tax relief and get to the £11,300.35 gross value. Deduct any contributions made so far during this tax year from this.

thanks for the above jamesd
what does the bit "Deduct any contributions made so far during this tax year from this." Mean? sorry for being a bit obtuse?

From my salary I was also paying into an in-house AVC scheme deducted from salary. I assume you don't mean this. And as regards a SIPP - I haven't opened one yet. Is that what you meant?

Thanks again.

jamesd

Yes, I mean the AVCs and any other contributions you've already made.