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I'm assuming I've got to be quick with this though, by the end of this month to get this years tax break.0
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I think you will have plenty of time as long as you get on with it.
Don't forget that if you are a tax payer when your wife retires you can still use the transferable tax code thing I thinkNo.79 save £12k in 2020. Total end May £11610
Annual target £240000 -
Her pension statement is for £153 per week (£7956pa) allowing her to withdraw around £3.5k pa before hitting her tax threshold.
Unless she cancels her application for Marriage Allowance this would result in her having approx £221 to pay in tax (current year).
So you probably need to consider whether she should take the income you suggest and pay the tax.
Or take the income and cancel the Marriage Allowance but then you pay £230 more in tax.
Or take a slightly reduced amount of the SIPP.
She also needs to take care in the year she starts to get her State Pension as any overlap with payment of wages from her job (I assume from your posts that she would be stopping work when State Pension kicks in) would make her income more than might otherwise be expected for that year.0 -
I already claim her share of the marriage allowance but as I'm finishing work at the end of this April i'll give it her back in time for when she crunches the numbers against her state pension.
Until that time (October 2021) she'll be putting 100% of her salary in to the pension.
Now all i need to do is find a suitable SIPP:eek:0 -
NorthernGeezer wrote: »That's the plan Audaxer.
Probably invest it in a SIPP, I'm thinking with HL as they seem to have a good reputation.
Her pension statement is for £153 per week (£7956pa) allowing her to withdraw around £3.5k pa before hitting her tax threshold.0 -
Got it in 1 :money:0
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You will need to explain the reasoning behind that statement shreya please.0
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Fidelity or HL SIPP?
Anybody got any thoughts given the relatively small annual amount to invest?
I'm expecting a greater return from the tax break than the investment.0 -
I think HL don't charge if you leave the money as cash, but you have to keep the SIPP open for at least 12 months.
They are good on customer service, and generally not too bad charges-wise for smaller amounts whatever you invest in.0 -
Bit the bullet and opted for HL :beer:0
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