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Paying £2880 into pension when retired
Comments
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Do I have to enter the £2880 in the Pensions section:
Payments to registered pension schemes (Also known as PPR) where basic rate tax relief will be claimed by your pension provider (called Relief at source). Enter the payments and basic rate tax
No, the guidance tells you to enter (in your example) £3,600.And do I also need to complete £3600 in the Pensions section:
Pensions (other than State Pension), retirement annuities and taxable lump sums treated as pensions: (Optional)
Have you received exactly £3,600 in pension income during 2018:19?0 -
Have you received exactly £3,600 in pension income during 2018:19?[/QUOTE]
Yes that's correct.0 -
Then include it in the pension income (other than State Pension) box.
However your original post earlier today made no mention of pension income, it only referred to you making pension contributions.0 -
Yes I should have made that point. Thank you.0
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Looking at the guidance notes for the form, under Box 11 - Pensions (other than State Pension), retirement annuities and taxable lump sums treated as pensions it says the following:"Have you received exactly £3,600 in pension income during 2018:19?"
Yes that's correct.
"It also includes the taxable part of any:
- 'uncrystallised funds pension lump sum' you withdrew under pension flexibility"
Therefore if you took out the £3,600 as a UFPLS, I think that means the taxable part of the UFPLS which is £2,700, should go in Box 11. If 20% tax amounting to £540 was deducted from that, then that amount should go in Box 12 according to the instructions.0 -
If they took £3,600 as a UFPLS payment then they wouldn't have had £3,600 pension income in the first place. Just £2,700.0
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The way I understand it is that by taking a UFPLS of £3,600 they would be taking total pension income of £3,600 which comprises of £2,700 taxable income and £900 tax free income. Is that not correct?Dazed_and_confused wrote: »If they took £3,600 as a UFPLS payment then they wouldn't have had £3,600 pension income in the first place. Just £2,700.
I assume the original poster is doing what a lot of people are talking about on this thread, i.e. paying £2,880 into a SIPP, leaving it as cash, and when the £720 tax relief is added, withdrawing £3,600.0 -
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Self Assessment tax returns are all about taxable income.
Previously, in relation to completing your tax return, you said you had £3,600 pension income.
Are you now saying you only had £2,700 pension income?0 -
Dazed_and_confused wrote: »Self Assessment tax returns are all about taxable income.
Previously, in relation to completing your tax return, you said you had £3,600 pension income.
Are you now saying you only had £2,700 pension income?
I paid into the SIPP £2880 received £720 from the Tax Man and then withdraw £3600.
Does that help in what I put in what boxes on the Tax Return?
Just to add non tax payer.0
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