Paying £2880 into pension when retired

molerat

https://forums.moneysavingexpert.com/discussion/comment/81973360#Comment_81973360

Simply by understanding how the PAYE system works and when to make the withdrawal so the correct amount of tax is deducted meaning there is no need for a claim. To achieve this I take my annual UFPLS in June and MrsM takes hers in March.

DRS1

March I understand but June? With a small extra payment in March?

eastcorkram

https://forums.moneysavingexpert.com/discussion/comment/81973064#Comment_81973064

You don't need to draw it out though surely.

You've still gained the £720, even if you leave it in the SIPP.

molerat

https://forums.moneysavingexpert.com/discussion/comment/81973448#Comment_81973448

My code is BR so it doesn't really matter when I draw but as the April pay in doesn't get topped up until June I leave it until then. MrsM tops up in December and withdraws in March once topped up.

GenX0212

https://forums.moneysavingexpert.com/discussion/comment/81973541#Comment_81973541

Sorry, why doesn't your SIPP provider automatically add the tax relief when it is paid in? Why does it take 2 months, surely that isn't typical?

eastcorkram

https://forums.moneysavingexpert.com/discussion/comment/81973554#Comment_81973554

With HL and Fidelity, I've found it's always about 6 to 8 weeks.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81973541#Comment_81973541

Ah I get it. I thought you had your own personal tax year.

GenX0212

https://forums.moneysavingexpert.com/discussion/comment/81973561#Comment_81973561

Wow, Mrs GenX has a Wealthify robo SIPP and it gets added virtually instantly

…but see my other thread re trying to take money out ! 🙄

Nebulous2

https://forums.moneysavingexpert.com/discussion/comment/81973554#Comment_81973554

SIPP providers have to claim the tax back from HMRC, then add it to your account - some of them prefund it, effectively give you the tax back from their own resources, but it is prefunding which isn't typical, not having to wait for it.

where_are_we

https://forums.moneysavingexpert.com/discussion/comment/81973465#Comment_81973465

https://forums.moneysavingexpert.com/discussion/comment/81973465#Comment_81973465

Yes - you are correct - the gain within the Sipp is £720, even if you leave it, but the lucrative part for "Willow1983" is, because she doesn`t have any income, any withdrawal will incur no tax because her income will be below her annual personal tax allowance. If would not make any sense to leave it in the Sipp and then make a withdrawal in year when her tax position has changed eg possibly when she receives the state pension or if she enters employment - who knows. For her it is a use it or lose it scenario each tax year.