Opening a private pension this tax year

dont_use_vistaprint

Hi

I just made a large payment into a salary sacrifice pension but under-estimated Q1/March paye and other incomes , so will still be getting a large tax bill when I self assess.

In the time, 1 week, it possible to open and make a payment into a new / private pension and will it attract full 40% tax relief when I self assess.

Can I do this without setting up regular payments in ? CAn anyone recommend one with lowish fees and good reputation, thanks

Funkyfreddy

Does your workplace pension have the provision/allow additional contributions to be made direct from you rather than as a deduction from your pay, obviously outside salary sacrifice but that's not realky a concern ? You might still have time to get that in before the 5th April !

You would just need to calculate your required contribution depending on the type if scheme and where/how relief is normally given.

dont_use_vistaprint

Funkyfreddy wrote: »

Does your workplace pension have the provision/allow additional contributions to be made direct from you rather than as a deduction from your pay, obviously outside salary sacrifice but that's not realky a concern ? You might still have time to get that in before the 5th April !

You would just need to calculate your required contribution depending on the type if scheme and where/how relief is normally given.

I dont want to ask, its so much effort, been trying to make this payment since Dec 2018 , countless emails, they miss it every month, its only just happened and they still got the amount wrong. Just want to put another 8-10k somewhere half decent for the future, otherwise I just lose 40%. What I'm not sure is if I take for example 10K out of Marcus and put into a new pension before April 7th, can I list it on my self assessment and get full HR tax relief, even though its not coming from my PAYE income

AnotherJoe

Are you sure it's lot of effort? With my last employer you could just phone up and make a payment direct.
I'd have thought there just wasn't time but you could call someone with decent admin like Hargreaves Lansdown and ask them

justme111

dont_use_vistaprint wrote: »

What I'm not sure is if I take for example 10K out of Marcus and put into a new pension before April 7th, can I list it on my self assessment and get full HR tax relief, even though its not coming from my PAYE income

To the best of my knowledge yes. As long as you are not over what you earned ( which you obviously not going to be as you getting your info.e down to the base rate) and the total contributed in a year is less than 40 k.

dunstonh

You can pay into a pension right up to Friday and still be in this tax year. However, do be aware that will mean paying by cheque or CHAPS. if you want to use BACs you really need to do it by tomorrow or split the payment into multiple smaller chunks to qualify for faster payment.

Funkyfreddy

dont_use_vistaprint wrote: »

I dont want to ask, its so much effort, been trying to make this payment since Dec 2018 , countless emails, they miss it every month, its only just happened and they still got the amount wrong. Just want to put another 8-10k somewhere half decent for the future, otherwise I just lose 40%. What I'm not sure is if I take for example 10K out of Marcus and put into a new pension before April 7th, can I list it on my self assessment and get full HR tax relief, even though its not coming from my PAYE income

Providing you have earnings equal to or greater than your intended contributions you can use money from your personal accounts.

Don't forget if you open and contribute to your own fund this week on/before the 5th (not 7th!) you will see "Relief at Source" at basic rate from your chosen provider; a contribution of £10K will be grossed up to £12,500 & it is this figure you would use on your SA (SA100 - Tax reliefs - Box 1) .

If you are entitled to additional 20% higher rate relief your SA calculation will reflect that.

AnotherJoe

dont_use_vistaprint wrote: »

I dont want to ask, its so much effort, been trying to make this payment since Dec 2018 , countless emails, they miss it every month, its only just happened and they still got the amount wrong. Just want to put another 8-10k somewhere half decent for the future, otherwise I just lose 40%. What I'm not sure is if I take for example 10K out of Marcus and put into a new pension before April 7th, can I list it on my self assessment and get full HR tax relief, even though its not coming from my PAYE income

Before April 6th, eg 5th is the last day. New tax year starts on 6th.