Moving ISA to Pension: technical issues?

michaels

If you are using sal sac then don't forget paid sal has to be at least NMW.

Also don't forget unused 'carry forward' allowance only lasts 3 years so it might be moving as much as you can as quickly as you can to make sure you don't waste 'expired' carry-forward (subject to the NMW floor above) although you could also make contributions out of net income if you do want to go below NMW, the nice bit here is although you don't get the NI back you do get the tax relief on pension payments even on amounts below the personal allowance on which you did not actually pay any tax in the first place.

FatherAbraham

michaels wrote: »

If you are using sal sac then don't forget paid sal has to be at least NMW.

Also don't forget unused 'carry forward' allowance only lasts 3 years so it might be moving as much as you can as quickly as you can to make sure you don't waste 'expired' carry-forward (subject to the NMW floor above) although you could also make contributions out of net income if you do want to go below NMW, the nice bit here is although you don't get the NI back you do get the tax relief on pension payments even on amounts below the personal allowance on which you did not actually pay any tax in the first place.

Yes, two good points, thanks.

To use carry-forward, do I have to tell HMRC that I'm claiming it, or do I just do it, and only explain if they ask?

shinytop

o use carry-forward, do I have to tell HMRC that I'm claiming it, or do I just do it, and only explain if they ask?

No, just do the calculations and do it.

Your plan is essentially the same as I'm doing, albeit for a shorter time, i.e. maxing out my last 3 years in employment. I might have done it earlier if I'd thought about it.