Learning to walk before I run

edinburgher

I am crabbit today, grumpy and argumentative 

£6.91 withdrawn from Prolific, £5 paid into my SIPP (£6.25 after tax relief)

savingholmes

We all have days like that. Well done on the survey £ and the SIPP 

edinburgher

Plasterer #2 out today, they start fitting the staircase tomorrow Mrs E has taken both girls to the park, must dash for a shower and a shave!

savingholmes

Do you have a revised date for when you can move back?

Great news the plastering is starting and the stairs.

edinburgher

@savingholmes - hopefully be home in a fortnight - fingers crossed!

£5.68 paid into SIPP from my personal spends (£7.10 after tax relief). I am now less than £6 away from having paid in £1,000 since the start of the tax year.

I am starting to think, however, that the LISA (as espoused by @South_coast) could work very well for me as a) this is the last year that I can start one and b) I don't currently pay HR tax. In short, if I could pay enough into it over the next 11 years to cover the period 60-62, that would allow me to live off my 25% PCLS 58-60, then LISA, then draw DB pensions from 62 (6 years early, as opposed to 10 years early). This would mean a smaller reduction and potentially greater lifetime income. 

Still mulling it all over. There is a sniff of a HR tax promotion on the horizon, but we'd probably be talking November at the earliest.

badmemory

If you do need to pay higher rate tax, could you increase pension payments to keep child benefit.  Either way you will need to do self assessment, which whilst being a PITA is way way better than the simple assessment they do when they force you to stop doing self assessment.

edinburgher

@badmemory - thank you for the suggestion, even if I did get the promotion it would be 3+ years before I would hit £50k.... which sounds ridiculous now that I put it in writing

killerpeaty

I think you should plan for when you got £50k. It is good to keep up with the legislation and you can avoid any nasty surprises. I've had a few clients upset/in tears because they did not know the rules and did things which ended up costing a lot of money.

The worst one I've heard of recently was from a colleague who managed to get themselves into £300k of tax. I have no idea how, something to do with investments trading. But they did it two years in a row!

edinburgher

@killerpeaty - £300k?! Made then lost a crypto fortune?

killerpeaty

Honestly don't know! My personal tax colleague told me about it last tax season. Apparently he cried down the phone to her.

I keep all my investments in tax wrappers though to avoid anything like that.

Edit to add, i meant to say, that it's so important because changes have happened in recent years which really caught out landlords. The change in the rules for interest meant that they were being pushed over thresholds for the first time.