Paying £2880 into pension when retired

nxdmsandkaskdjaqd

Dazed_and_confused wrote: »

If it is your first withdrawal you cannot overcome the emergency tax code. You can always withdraw less than £1,042 taxable income as a first payment which means no tax would be deducted.

If it isn't your first withdrawal then it will depend on what tax code is allocated to your pension with Hargreaves Lansdown

I just spoke to HL, they advised that they have no specific code, so a personal code would apply. This is not the first withdrawal.

Dazed_and_confused

All tax codes are "personal", personal to you and the employer or pension payer in question.

You should check your Personal Tax Account on gov.uk to see what tax code HMRC have sent to Hargreaves Lansdown for the current tax year.

Then get in touch with HL again and check that that is the tax code they will use if you make a withdrawal. Ask if it is cumulative or non cumulative (emergency) basis.

On e you know that you can work out what tax will be deducted (if any) from your withdrawal.

See_Em

nxdmsandkaskdjaqd said:

Based on some of the recent comments. When is the best time to pay £2880 in to a SIPP such that you overcome emergency tax coding when you withdraw the £2880 plus the Tax Mans contribution of £720. Does about 6 weeks before the end of the tax year sound about right?

Account with HL if that helps.

Not sure about the tax code but I read somewhere on HL site that you need to make your SIPP contribution by the 5th of the month and tax relief is paid on 21st of the next month. So I think before 5th of Feb is the critical date (assuming its not a weekend).

Rob749

If you've already made a withdrawal before, HL will apply your normal tax code, and won't apply the emergency tax code whenever you apply to withdraw from the first time onwards, as HMRC would have advised them of your code. As See_Em said the only restrictive dates are HL's, just make sure it goes in on or before 5th of March, because I'm fairly sure it counts in the tax year that you apply and not when it is received by you. 

[Deleted User]

I am retired aged 65 and plan to put £2880 into a Sipp annually until I am 75. 

I have read a chunk of this thread and people are generally using HL and withdrawing for income. 

As a non taxpayer and not requiring any income I would be leaving my money in a fund. 

Is there anything I should consider and are there other suggestions than HL I can investigate?

Thank you. 

xylophone

You have a wide choice of pension providers.
https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions
https://www.cavendishonline.co.uk/choose-your-pension
https://www.money.co.uk/pensions.htm

swindiff

If you leave it in too long when it comes to drawing it you could end up paying tax on it.  If it were me I would withdraw it each year and put it in an ISA.

clivep

swindiff said:

If you leave it in too long when it comes to drawing it you could end up paying tax on it.  If it were me I would withdraw it each year and put it in an ISA.

... Unless you are not planning on drawing on it at all and instead leaving the untouched pot to your beneficiaries when you die and saving on inheritance tax.

imported_batman

been reading this thread if i put in 2800  into  hl sipp in november should i withdraw all the money plus tax relief i.e 3600 b4 5th april and then start again with 2800 after 6th april is this best thing to do ?

Dazed_and_C0nfused

If you contribute £2,800 it will only be £3,500, not £3,600.

No one can answer with such limited information.  You might pay 40% tax on it?  You might be charged by HL?

What do you want/need to do?