Career Break/Draw Down/NHS Pension

Mell60_2

kidmugsy wrote: »

Excellent. That means you can draw down the 25% tax-free lump sum, and a fair bit of tax-exposed money untaxed too, because you'll have almost all your income tax Personal Allowance available. Depending how much capital you have in your SIPP you could drawdown more untaxed in 19/20, assuming that you will have no (or little) employment income in that tax year.

This means that you might like to see if you can contribute more to your SIPP before the end of this tax year (05/04/2018) and whether you'll be able to afford a contribution in 18/19: you'll be allowed to contribute £2,880 net => £3,600 gross.

That’s good, yes I’m saving like mad to contribute more before the end of the tax year (05/04/2018). I should have enough contributions to fund the two years £24k paying little or no tax.

:j

Mell60_2

AnotherJoe wrote: »

In the years you aren’t working you can pay £2,880 into your SIPP which will get an extra £720 added.

That’s good. :beer: