We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Credit SIPP account
AskAsk
Posts: 3,048 Forumite
My friend earns 28k and wants to put all of that into his pension this tax year. Can he put 20k in immediately from his savings into his HL SIPP account before he has earned this money? I believe the answer is yes, but would like to double check.
0
Comments
-
Yes he can. HMRC dont work it out until the end of the tax year so as long as he earns at least the total of all his contributions by then he will be OK.AskAsk said:My friend earns 28k and wants to put all of that into his pension this tax year. Can he put 20k in immediately from his savings into his HL SIPP account before he has earned this money? I believe the answer is yes, but would like to double check.
Note that £20K paid into a SIPP turns into £25K of contributions after the tax rebate. It's the £25K that matters.2 -
He could, but personally I wouldn't and would suggest to any friend that they reconsider if they were planning to do so - I'm aware of too many cases of people suddenly being made unemployed from what they thought were safe jobs; yes they did get back into employment, but many had to go back on less money and it wasn't always easy to find that next job.AskAsk said:My friend earns 28k and wants to put all of that into his pension this tax year. Can he put 20k in immediately from his savings into his HL SIPP account before he has earned this money? I believe the answer is yes, but would like to double check.
If they really want to start investing the money now then they could consider putting the money into a GIA stocks and shares account and take the value out as the year progresses and move it into the SIPP. Yes, it would involve a bit more work, and may have some small increase in costs, but they don't leave themselves open to putting in more money than they've earned into a pension.
Edit - Actually if they use the HL investment account then I think the costs should be the same.0 -
Alternatively they could add say £5K at a time , there would be no extra charges for doing this.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards