Sorting my wife's pension for remaining working years

tigerspill

BoGoF wrote: »

That being the case they can pay more than they think.

Dazed_and_confused wrote: »

Yes, I suspect the op thinks you are limited somehow to the amount of tax paid (on earnings?).
Obviously hasn't read the £2,880/£3,600 thread

Linton wrote: »

To make one aspect clear:Your wife could contribute her whole salary minus her TPS contribution into the SIPP and get tax relief on the £12500 that was not actually taxed. To do this she would contribute net, ie the gross contribution -20%. The missing 20% would be paid into her SIPP by HMRC.

On one specific question - so this means that you can get tax relief on income where no tax is due - i.e. the zero tax banded £12500. Even though no tax was paid on this?

BoGoF

tigerspill wrote: »

On one specific question - so this means that you can get tax relief on income where no tax is due - i.e. the zero tax banded £12500. Even though no tax was paid on this?

Correct, even if you earn exactly £12,500 exactly and pay no tax you can still pay 80% into a pension scheme and this will attract basic rate relief.

tigerspill

BoGoF wrote: »

Correct, even if you earn exactly £12,500 exactly and pay no tax you can still pay 80% into a pension scheme and this will attract basic rate relief.

Thanks for this. Just to complete my understanding of this example.
With income of exactly £12,500 - I could put 80% of that into a SIPP (£10000). This would be grossed up to £12,500 in the SIPP.
So I would have £2500 left with me and £12,500 in the SIPP.

Sorry for being a bit anal on this. I just want to have as clear an understanding as possible.

BoGoF

What do you mean £2500 'left with me'?

The £2500 would be credited to your SIPP and you would have £12,500 yes.

BoGoF

I think you mean £2500 left of your £12,500?

Yes you would.

tigerspill

BoGoF wrote: »

What do you mean £2500 'left with me'?

The £2500 would be credited to your SIPP and you would have £12,500 yes.

What I meant was that in the example - If I had put the 80% (or £10000) of the £12500 income into the SIPP. That would leave £2500 remaining not in the SIPP.
So I would have £12500 in the Sipp - grossed up from the £10000. Plus the income not put in the SIPP of £2500. This would be the remainder of the income.

BoGoF

tigerspill wrote: »

What I meant was that in the example - If I had put the 80% (or £10000) of the £12500 income into the SIPP. That would leave £2500 remaining not in the SIPP.
So I would have £12500 in the Sipp - grossed up from the £10000. Plus the income not put in the SIPP of £2500. This would be the remainder of the income.

Yeah, the penny dropped and I added another post as you were replying.....see above.

soulsaver

Thanks for that, glad I put it out to be shot at as it's clarified my (OH's) position, too.

I'll guess the next question is if it's the intention to hold it as cash in a SIPP as it's drawn down for the following few years, HL atm doesn't charge any fees? On the way in & out?

tigerspill

BoGoF wrote: »

Yeah, the penny dropped and I added another post as you were replying.....see above.

I cant believe you can get the "tax back" on money where you haven't even paid tax. Happy days! £2500 for nothing at all (other than tying the cash up).

tigerspill

soulsaver wrote: »

Thanks for that, glad I put it out to be shot at as it's clarified my (OH's) position, too.

I'll guess the next question is if it's the intention to hold it as cash in a SIPP as it's drawn down for the following few years, HL atm doesn't charge any fees? On the way in & out?

Do you know what rate they offer? 0%?