Paying £2880 into pension when retired

hogweed

p00hsticks wrote: »

Surely you get payslips ? Your pension contributions should be shown as a deduction on them .......

D'Ohhh!! I always shred them, but found one in my drawer - thanks.

But am I right in believing that the maximum investment I can make is equivalent to my salary net of ALL such contributions, ie pensions, tax, NI?

Thanks

missile

hogweed wrote: »

D'Ohhh!! I always shred them, but found one in my drawer - thanks.

But am I right in believing that the maximum investment I can make is equivalent to my salary net of ALL such contributions, ie pensions, tax, NI?

Thanks

Maximum annual contribution allowance to all pensions is equal to your gross salary.
In addition, you may be able to carry forward unused allowance from previous years>
http://www.hmrc.gov.uk/tools/annualallowancelimit/index.htm

xylophone

Doesn't your pay slip show "Year to Date Pension Conts" and a figure each month for "Pension Conts"?

hogweed

xylophone wrote: »

Doesn't your pay slip show "Year to Date Pension Conts" and a figure each month for "Pension Conts"?

Yes, it does, thanks. I’m one of those people whose pay slip never changes much, and for whom that kind of information has never previously been very relevant, so I’m only really looking at it for the first time.

But basically, my Gross per annum is £16,099; pension contributions £95.25/month, so £1143pa; so I figure my maximum investment would be £14956…?

Though @missile’s previous post has thrown another spanner in the works… can I really add a whole pile from previous years too??? Not that I have that kind of cash lying around… but it would almost be worth taking out a bank loan, wouldn't it…

xylophone

Though @missile’s previous post has thrown another spanner in the works… can I really add a whole pile from previous years too???

Even where " Carry Forward" is available, personal contributions need to be within 100% of the individual’s relevant UK earnings for tax relief purposes in the actual year the contribution is paid.

francisbowles

I am 59 years old and took voluntary redundancy in September 2016. I elected not to invest any of this in my final salary pension which had been fully crystalised for over four years.

I had commenced drawing 40% of my pension, including 25% of this as a tax free lump sum, in May 2016 (and reduced my hours). At this point I didn't know there was going to be a voluntary severance.

I have been advised that I have gone over the annual allowance for the year 2016/17 but have allowance remaining from the previous years.

I am currently planning to take the remaining 60% of my pension, including 25% of this as a tax free lump sum, in August 2017 when I will be 60 but I can defer this.

So firstly, am I eligible to open a SIP with £2880 this tax year and gain tax relief on 25% of £3600 next.

Secondly, can I benefit from paying in a larger amount this tax year and withdrawing next as I was employed for six months.

I had sufficient savings before the severance to demonstrate that I am not recycling pension money.

I am happy to provide all necessary figures if needed to calculate whether there may be eligibility.

Thanks

missile

hogweed wrote: »

Yes, it does, thanks. I’m one of those people whose pay slip never changes much, and for whom that kind of information has never previously been very relevant, so I’m only really looking at it for the first time.

But basically, my Gross per annum is £16,099; pension contributions £95.25/month, so £1143pa; so I figure my maximum investment would be £14956…?

Though @missile’s previous post has thrown another spanner in the works… can I really add a whole pile from previous years too??? Not that I have that kind of cash lying around… but it would almost be worth taking out a bank loan, wouldn't it…

I would suggest you only invest what you can afford.

If I were in your position, I would contact HL. I found them to be very helpful.

hogweed

missile wrote: »

I would suggest you only invest what you can afford.

If I were in your position, I would contact HL. I found them to be very helpful.

Thanks – well, I can afford one year’s investment, so say £15k or so. And I’m pretty sure, having investigated further, I have no “back tax” allowance, so that simplifies things.

I’ll talk to HL tomorrow. Originally I assumed they wouldn’t want to give advice, but I now think this kind of “technical” advice (ie what you can do and what you can’t) is OK to ask for.

But do you think my calculations are correct for this tax year:

“Basically, my Gross per annum is £16,099; pension contributions £95.25/month, so £1143pa; so I figure my maximum investment would be £14956…?”

I’ll leave you all alone after this I think!

LXdaddy

Is your current scheme a DB (final salary) or DC (money purchase) scheme?

If DB the value by which the pension value has increased is taken into account (not just your contributions)

If DC, I suspect that any contributions by your employer also count against the maximum you can put into another pension plan.

hogweed

LXdaddy wrote: »

Is your current scheme a DB (final salary) or DC (money purchase) scheme?

Final salary. I'll ask HL about this tomorrow.

Thanks for the tip