Would you use mortgage debt to fund carry forward relief?

RickyB2000

Do you have other savings? Are you spending all your £100k after tax income each year? Are you not putting anything into a pension already?

One year putting all your earnings into a pension would achieve the same. So rather than touch the morgatage, minimise spending for a year, and put as much income as you can into the pension.

Or if needed right now, put the morgatage money in with a target of having saved it back up again in 2 years time (so live off £25k a year).

If you have plenty of other savings, then it may be an easier decision. If you don't have any other savings on that income, I would be more wary about putting the morgatage money in - as it suggests a high spend lifestyle.

Snakey

I wasn't being sarcastic.

I have nothing against online calculators, but they are only intended to give you an idea. They do not claim to be definitive advice.

It would be a lot easier to help you further at this point, I think, if you did some legwork and we check it rather than us all doing it for you without all the information (you never mentioned you were an additional rate taxpayer, for instance).

Tell us how much you are intending to put in and how much tax relief you are expecting back and how you think it will work mechanically. If you've made any wrong assumptions people can then comment on that.

Your total contributions each year so far sound extremely low for somebody of your age and income level. When you do your calculation, make sure you include everything you're supposed to. Nobody here will be able to check that you've done that correctly.

nick777vvv

RickyB2000 wrote: »

Do you have other savings? Are you spending all your £100k after tax income each year? Are you not putting anything into a pension already?

One year putting all your earnings into a pension would achieve the same. So rather than touch the morgatage, minimise spending for a year, and put as much income as you can into the pension.

Or if needed right now, put the morgatage money in with a target of having saved it back up again in 2 years time (so live off £25k a year).

If you have plenty of other savings, then it may be an easier decision. If you don't have any other savings on that income, I would be more wary about putting the morgatage money in - as it suggests a high spend lifestyle.

Not savings that are readily accessible. Despite the good salary, the past few years income has had to be committed elsewhere, hence the opportunity now to take advantage of the relief. From next tax year onwards things will be 'back to normal' with regular monthly savings into a SIPP.

As pension savings over the past few years have been negligible, I can claim the majority of the relief available, hence my thoughts to maximise this opportunity whilst I can.