£2880>£3600

uk1

bigadaj wrote: »

Nope, you used to be able to do that but it's a good few years ago now.

Oh bngger! I had started to spend that cash.

You could have let me down gently. Perhaps made it into a little song or something.

Thanks.

Still.

jamesd

esmy wrote: »

Thanks for you help with this. This was my concern/confusion. My occupational pension (LGPS) lump sum paid very recently exceeds the £7,500 limit so presumably there would be no advantage to me within the 12 month period of this being paid??

It would have no effect because taking that lump sum when you took the rest of the LGPS pension was just normal retirement planning. Also you clearly didn't pre-plan to recycle any of the lump sum into new pension contributions when you did that so it's not an issue for that reason. It's also likely that your employee contributions into LGPS were higher than the amount involved in doing this which would mean that it was not an increase. Even if this is higher it's not likely to be so much higher that the increase in the next three years is worth more than 30% of the value of your LGPS lump sum.

acc

When taking this type of pension of £3600 from a net contribution of £2880, does the untaxed 25% count against the personal allowance of £11,000, as well as the taxed 75%?

Also, can the tax on the 75% be claimed back at any time, and can it be done online, or does the claim have to be made after the end of the tax year?

Thanks.

zagfles

acc wrote: »

When taking this type of pension of £3600 from a net contribution of £2880, does the untaxed 25% count against the personal allowance of £11,000, as well as the taxed 75%?

Also, can the tax on the 75% be claimed back at any time, and can it be done online, or does the claim have to be made after the end of the tax year?

Thanks.

The 25% is totally tax free so it doesn't use up the personal allowance. The rest will count as income and is usually paid PAYE, like earnings from a job with a tax code etc.

uk1

In these days of complaining about poor customer service, I thought I'd post about Virgin Money's great customer service.

They had problems with money laundering checks which we sometimes experience due to the way our address is sometimes has inconsistencies. My wife called them and an intelligent and helpful person gave my wife her name and she identified the problem and managed it's resolution to a satisfactory conclusion, and it was the same person who called her back to apologise and confirm it was resolved.

These days, talking to intelligent and genuinely helpful people that take ownership and resolve problems from acceptance to satisfactory conclusion seems to us rare, so I thought the least I should do is say so here!


Jeff

Ganga

Can you hold more than one? ie could i call in at Vigin money and open one for myself and one for my wife and then open another one at the Pru who are my pension provider ( i have retired but do not draw any income apart from my 25% tax free alowance from my pension pot )

Thanks Ganga

Linton

If you are a non tax payer you can only put £2880 net (£3600 gross) into pensions in a tax year. That could be all in one or split between many. However splitting a small sum such as £2880 is probably rather pointless and potentially expensive.

Ganga

Thanks Linton,i presume that both myself and my wife can open one each in this tax year.

jamesd

You can open and pay into as many as you like but the overall limit of 2880 net/3600 gross applies across all of them combined. That's per person so yes provided you're within the 55 to under 75 age range there's no problem to do one each or you and your wife. Under 55s can do the pay in but but have to wait until 55 to do the taking out part.

Ganga

Thanks jamed,i am 66 in a couple of weeks time and my wife is 63 so no problem as far as age goes.Might as well make some money for nothing.

Regards Ganga