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Claiming SIPP tax back
ja11mes
Posts: 6 Forumite
I've read a few threads on here regarding claiming tax back following a contribution into a SIPP but to be honest, it's still unclear to me exactly how this works.
As way of background.... over the past few years I've recently become a higher tax payer.
In 2017/18, I paid around £120 in 40% tax and in 2018/19 paid around £1,300 in 40% tax.
So first question, even though the previous tax years have now obviously passed, am I still able to make contributions and claim back the 40% tax I've paid during previous years?
If so, my plan is to make 2 contributions in the near future.
1st - invest £600, receive auto 20% Gov contribution of £120 and then claim back an additional £120, which covers the 40% tax amount paid in 2017/18.
2nd - invest £6,500, receive auto 20% Gov contribution of £1,300 and then claim back an additional £1,300, which covers the 40% tax amount paid in 2018/19.
In short, is this feasible? Any issues or obstacles with what I'm proposing here?
Also, does it keep it cleaner breaking the contributions up into 'tax years'? Or should I just make one overall contribution and claim total 40% tax of £1,420 cover the tax over both years?
Anything else I should consider that I'm potentially missing?
As way of background.... over the past few years I've recently become a higher tax payer.
In 2017/18, I paid around £120 in 40% tax and in 2018/19 paid around £1,300 in 40% tax.
So first question, even though the previous tax years have now obviously passed, am I still able to make contributions and claim back the 40% tax I've paid during previous years?
If so, my plan is to make 2 contributions in the near future.
1st - invest £600, receive auto 20% Gov contribution of £120 and then claim back an additional £120, which covers the 40% tax amount paid in 2017/18.
2nd - invest £6,500, receive auto 20% Gov contribution of £1,300 and then claim back an additional £1,300, which covers the 40% tax amount paid in 2018/19.
In short, is this feasible? Any issues or obstacles with what I'm proposing here?
Also, does it keep it cleaner breaking the contributions up into 'tax years'? Or should I just make one overall contribution and claim total 40% tax of £1,420 cover the tax over both years?
Anything else I should consider that I'm potentially missing?
0
Comments
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You can't claim the 40% tax back for previous years.0
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No problem, thanks for the info. folks
Guess I just need to be smarter and ensure I increase future pension contributions via salary sacrifice so I don't end up paying more tax than I need to0 -
That would be a good idea .Guess I just need to be smarter and ensure I increase future pension contributions via salary sacrifice so I don't end up paying more tax than I need to0
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