We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Reducing tax by putting money into SIPP

singhini · 2017-12-14 10:30:10

I will try to keep this simple. I am a 40% tax payer and I was moaning I pay too much tax (friend said easy, just put lump sum into your SIPP). My issue is I don’t really understand pensions. Currently I’m putting £9,000 (ish) into various pensions annually (this amount includes my money + employer contributions + tax…

Comments

Dazed_and_confused Posts: 6,458 Forumite

15 December 2017 at 1:52AM

That's a really good point, HMRC will add all money from interest to my total earnings and then stick -£500 at the bottom of the calculation sheet.

Not quite, it's more like £500 x 0%. The crucial thing is that income is included so it can impact, amongst others, the child benefit charge or amount of personal allowance even when the income is taxed at 0%

0

This discussion has been closed.

★ ★ ★ Meet your Ambassadors

Reducing tax by putting money into SIPP

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free