Paying £2880 into pension when retired

vixen1500

ukdw wrote: »

Also why wait until Feb 20 to pay in next years - how about Apr 19 instead (potentially partially funded by the £1880 initial withdrawal)? that way you will get next years £720 up to 10 months earlier and you could withdraw this years tax relief at the same time.

New tax year so can now pay in this years £2880.

Last year I also had a small earnings around £3000 so can I also pay in 80% of earnings this year as I started paying in to a SIPP last year and not drawn anything out yet.

But next year I would not be able to pay the extra having already drawn down on it.

Or could I just pay in enough to bring the total figure upto £4000 instead of the £3600

Does this now sound right?🤔

Thanks for everyone's advice on this so far 🙂

Dazed_and_confused

Last year I also had a small earnings around £3000 so can I also pay in 80% of earnings this year as I started paying in to a SIPP last year and not drawn anything out yet.

Presuambly you mean last tax year, 2018:19.

If so it is irrelevant now as you have missed the boat for contributing for 2018:19.

The maximum you could have contributed was £3,600. £2,880 payment from you and £720 basic rate tax relief added by the pension company. You could have only paid more if your earnings were greater than £3,600.

vixen1500

Dazed_and_confused wrote: »

Presuambly you mean last tax year, 2018:19.

If so it is irrelevant now as you have missed the boat for contributing for 2018:19.

The maximum you could have contributed was £3,600. £2,880 payment from you and £720 basic rate tax relief added by the pension company. You could have only paid more if your earnings were greater than £3,600.

Paid in £2880 for tax year 2018/19

It was the amount for this current 2019/20 I was querying.

Where does the £3600 figure come from? Is that the £2880 + tax relief?

So you can only pay in extra if you earn more than that?

Also once the tax relief for both years is received I can then withdraw £6200, but will then have to claim the tax back on my 2019/20 tax return or can I get it back any sooner?

Think I might finally be getting my head around this at long last.

Dazed_and_confused

£2,880 + £720 = £3,600

Yes, unless you have relevant earnings for pension contribution purposes which are greater than £3,600 then you are limited to paying £2,880 (plus the £720 tax relief = £3,600).

You may be able to claim a tax refund, if one is due, in advance of competing a Self Assessment return.

But you would still have to declare the pension income on your return. And also remember to include the tax refund you received in the middle of the tax year on your return.

Google HMRC P53 and P55 (there are different forms depending on the type of pension withdrawal).

vixen1500

Dazed_and_confused wrote: »

£2,880 + £720 = £3,600

Yes, unless you have relevant earnings for pension contribution purposes which are greater than £3,600 then you are limited to paying £2,880 (plus the £720 tax relief = £3,600).

You may be able to claim a tax refund, if one is due, in advance of competing a Self Assessment return.

But you would still have to declare the pension income on your return. And also remember to include the tax refund you received in the middle of the tax year on your return.

Google HMRC P53 and P55 (there are different forms depending on the type of pension withdrawal).

Thanks for your help as until I came across this thread I did even realised SIPP even existed

skycatcher

Dazed_and_confused wrote: »

£2,880 + £720 = £3,600

Yes, unless you have relevant earnings for pension contribution purposes which are greater than £3,600 then you are limited to paying £2,880 (plus the £720 tax relief = £3,600).

You may be able to claim a tax refund, if one is due, in advance of competing a Self Assessment return.

But you would still have to declare the pension income on your return. And also remember to include the tax refund you received in the middle of the tax year on your return.

Google HMRC P53 and P55 (there are different forms depending on the type of pension withdrawal).

I want to reclaim the tax paid (in 18/19 tax yr) using P53Z but the link on the HMRC website only has forms for 19/20. Does anyone know if you can get last years forms from their site as I haven't been able to find them?

drumtochty

As we are in the 19/20 tax year, you have to claim any tax overpaid in 2018/2019 tax year on your self assessment tax return not on the forms mentio


The forms are only for the current tax year, therefore you cannot find the forms for last year.

Dazed_and_confused

You don't need to file a Self Assessment return to claim a tax refund on a pension withdrawal.

If you have to file a return for some other reason then the Self Assessment return is the only option now but if not you can just write to HMRC with all the information the P53Z asks for and they will make any refund due.

Or do nothing and they will refund it automatically when they review your records later this year.

jamesd

Would those who understand the tax forms to use please check that my summary is right and let me know about any useful tips that I've missed?

skycatcher wrote: »

I want to reclaim the tax paid (in 18/19 tax yr) using P53Z but the link on the HMRC website only has forms for 19/20. Does anyone know if you can get last years forms from their site as I haven't been able to find them?

The "print, fill in and post" version of the P53 (not P543Z) (scroll down) has a box where you can say which tax year it's for.

Madeinireland

Hi - just a quick question on this recycling into SIPP trick that this thread covers nicely...

In order to continue doing it and to stay within the personal allowance could you delay taking your state pension if you wanted? I’m not sure if I’d want to do that but it may be something some people would consider

Thanks...