SIPP advice please.

[Deleted User]

macman said:

I'd look at Vanguard for that level of investment. You can't just put £10K in, you are subject to an annual limit depending on your current salary. However any existing funds can be transferred in full (but check for any exit fees first).
Vanguard offer a range of blended funds in various ratios of equities to bonds, but these do have a US rather than UK bias.

Am I correct in stating I can put up to 100% of my salary in any financial year?
For instance this poster is stating I cannot put £10k in?(earning £30k per year)
Thanks

FROM THE GOV.UK SITE

You usually pay tax if savings in your pension pots go above:

• 100% of your earnings in a year - this is the limit on tax relief you get
• £40,000 a year - check your ‘annual allowance’
• £1,073,100 in your lifetime - this is the lifetime allowance

You also pay tax on contributions if your pension provider:

eskbanker

If you're earning £30K/year you can pay up to £24K (which would be grossed up to £30K via tax relief) into a SIPP pensions in any tax year.

Albermarle

eskbanker said:

If you're earning £30K/year you can pay up to £24K (which would be grossed up to £30K via tax relief) into a SIPP in any tax year.

To be clear that would include the contributions you already make to your workplace pension but not include your employer contributions in this respect. 
Do you know how your workplace contributions are made ?- if by salary sacrifice then would be better to increase these up to max possible before making any separate contributions to a SIPP.
The fact you might leave your employer in one year is not relevant as the pension will come with you assuming it is a standard workplace DC pension.

[Deleted User]

Ok thanks for the clarification.
My employer pension would be 'salary sacrifice' as far as i'm aware.
So best think to do would be:
a) ramp up my employee contributions in my current job(Is there a limit or is that company specific?) until I leave.
b) open a 'Vanguard target retirement SIPP' and pay in a reasonable deposit and an ongoing amount.
Is this a relatively good option?
Many thanks its much appreciated.

Albermarle

Sounds like a plan . 
It is company specific but also you can not salary sacrifice below the minimum wage .
Have a look at what the workplace pension is invested in , you can usually change it if you want. Also check the charges fr future reference. If you leave the employer you can transfer it to Vanguard SIPP or leave it separate .

[Deleted User]

Great Albermarie!
I'll get moving with that asap.
Your help is much appreciated, particularly in these difficult times.
Good luck

macman

Deleted_User said:

macman said:

I'd look at Vanguard for that level of investment. You can't just put £10K in, you are subject to an annual limit depending on your current salary. However any existing funds can be transferred in full (but check for any exit fees first).
Vanguard offer a range of blended funds in various ratios of equities to bonds, but these do have a US rather than UK bias.

Am I correct in stating I can put up to 100% of my salary in any financial year?
For instance this poster is stating I cannot put £10k in?(earning £30k per year)
Thanks

FROM THE GOV.UK SITE

You usually pay tax if savings in your pension pots go above:

• 100% of your earnings in a year - this is the limit on tax relief you get
• £40,000 a year - check your ‘annual allowance’
• £1,073,100 in your lifetime - this is the lifetime allowance

You also pay tax on contributions if your pension provider:

I didn't say you couldn't put £10K in, I said it was subject to your annual earnings limit, which was unknown to me at that point. Unfortunately your timing is not great, as you've just missed the 19/20 cut off date for contributions. However you can carry forward any unused allowance for the previous 3 tax years. The .gov.uk site has loads of info and calculators to help you with this.

[Deleted User]

macman said:

Deleted_User said:

macman said:

I'd look at Vanguard for that level of investment. You can't just put £10K in, you are subject to an annual limit depending on your current salary. However any existing funds can be transferred in full (but check for any exit fees first).
Vanguard offer a range of blended funds in various ratios of equities to bonds, but these do have a US rather than UK bias.

Am I correct in stating I can put up to 100% of my salary in any financial year?
For instance this poster is stating I cannot put £10k in?(earning £30k per year)
Thanks

FROM THE GOV.UK SITE

You usually pay tax if savings in your pension pots go above:

• 100% of your earnings in a year - this is the limit on tax relief you get
• £40,000 a year - check your ‘annual allowance’
• £1,073,100 in your lifetime - this is the lifetime allowance

You also pay tax on contributions if your pension provider:

I didn't say you couldn't put £10K in, I said it was subject to your annual earnings limit, which was unknown to me at that point. Unfortunately your timing is not great, as you've just missed the 19/20 cut off date for contributions. However you can carry forward any unused allowance for the previous 3 tax years. The .gov.uk site has loads of info and calculators to help you with this.

Thanks Macman. I'll check it out.

kuratowski

macman said:
However you can carry forward any unused allowance for the previous 3 tax years.

But you still cannot exceed 100% your earnings.  The possibility to carry forward of previous years' unused allowances is useless, in this case.  It can only be used by people whose earnings exceed £40k.

macman

kuratowski said:

macman said:
However you can carry forward any unused allowance for the previous 3 tax years.

But you still cannot exceed 100% your earnings.  The possibility to carry forward of previous years' unused allowances is useless, in this case.  It can only be used by people whose earnings exceed £40k.

Yes, I think that is obvious. The OP has been drip-feeding info, and for all we know their income may well have been higher in preceding years. It's up to them to crunch the data.