MPAA Advice

avodavo

I am coming to terms with inadvertently triggering my MPAA, and I’m looking for advice about what I might now do now that I’ll be unable to pay anything near as much as I wanted to into my company DC scheme. I had been paying about £1800 per month since June, so have passed the £4000 limit by quite some margin this year. I am currently 57 and had been looking to pay in for at least another 5 years. My questions are:
I assume it’s better that I contact HMRC to try and work what I will need to pay, what other options would I have for investing over the next 5 years instead, I was thinking Stocks & Shares ISA. 

Also has anyone seen a MPAA support forum anywhere?

Thanks for any help, I feel broken.

xylophone

See

https://www.mandg.com/dam/pru/shared/documents/en/genm282401.pdf

https://www.curtisbanks.co.uk/case-study/money-purchase-annual-allowance-mpaa-fact-sheet/

You could choose to open a stocks and shares ISA and contribute your full allowance (£20,000) each tax year.

Marcon

avodavo said:

I am coming to terms with inadvertently triggering my MPAA, and I’m looking for advice about what I might now do now that I’ll be unable to pay anything near as much as I wanted to into my company DC scheme. I had been paying about £1800 per month since June, so have passed the £4000 limit by quite some margin this year. I am currently 57 and had been looking to pay in for at least another 5 years. My questions are:
I assume it’s better that I contact HMRC to try and work what I will need to pay, what other options would I have for investing over the next 5 years instead, I was thinking Stocks & Shares ISA. 

Also has anyone seen a MPAA support forum anywhere?

Thanks for any help, I feel broken.

Did you follow the advice when you raised this a couple of days ago? https://forums.moneysavingexpert.com/discussion/6403515/accidentally-triggered-mpaa#latest

If not, give it a go - what have you got to lose by asking?

Given the amount you have to invest, why not get some proper advice from an IFA? You won't be the only person in this position, and with a full understanding of your current situation and requirements, surely that's an investment worth making, rather than relying on 'advice' from random strangers based only on a sentence or two? However willing people are to help, they know nothing about you, so it's never going to be more than guesswork.

There are other options to look at, many of them with tax breaks, but pointless trying to speculate on what might work for you.

avodavo

Marcon said:

Did you follow the advice when you raised this a couple of days ago? https://forums.moneysavingexpert.com/discussion/6403515/accidentally-triggered-mpaa#latest

If not, give it a go - what have you got to lose by asking?



Given the amount you have to invest, why not get some proper advice from an IFA? You won't be the only person in this position, and with a full understanding of your current situation and requirements, surely that's an investment worth making, rather than relying on 'advice' from random strangers based only on a sentence or two? However willing people are to help, they know nothing about you, so it's never going to be more than guesswork.

There are other options to look at, many of them with tax breaks, but pointless trying to speculate on what might work for you.

I have contacted them and I’m waiting to hear back as I had to email them, but the more I read the worse it gets, so not holding out much hope. I did speak to an IFA last week that I found through unbiased, but he wasn’t familiar with the MPAA and wasn’t interested in taking me on. I need to try and sort out the tax owing first I think, I’m not sure who I should talk to, I will try and find another  IFA next week maybe. 

Thanks.

xylophone

I will try and find another  IFA next week maybe. 

You might try

https://adviserbook.co.uk/

Tick "confirmed independent" and such other specialisms as required when the menu comes up.

Marcon

avodavo said:

Marcon said:

Did you follow the advice when you raised this a couple of days ago? https://forums.moneysavingexpert.com/discussion/6403515/accidentally-triggered-mpaa#latest

If not, give it a go - what have you got to lose by asking?



Given the amount you have to invest, why not get some proper advice from an IFA? You won't be the only person in this position, and with a full understanding of your current situation and requirements, surely that's an investment worth making, rather than relying on 'advice' from random strangers based only on a sentence or two? However willing people are to help, they know nothing about you, so it's never going to be more than guesswork.

There are other options to look at, many of them with tax breaks, but pointless trying to speculate on what might work for you.

I have contacted them and I’m waiting to hear back as I had to email them, but the more I read the worse it gets, so not holding out much hope. I did speak to an IFA last week that I found through unbiased, but he wasn’t familiar with the MPAA and wasn’t interested in taking me on. I need to try and sort out the tax owing first I think, I’m not sure who I should talk to, I will try and find another  IFA next week maybe. 

Thanks.

Fingers crossed...

An IFA who isn't familiar with the MPAA isn't an IFA worth dealing with, so he's no loss.

Please don't despair. I know that's easy for me to say, but if you take a step back you are in the enviable position of having over £20,000 a year to invest, based on your £1,800 a month pension contributions - something many people can only dream of. The door to hefty future pension contributions might (or possibly might not) be closed, but there are plenty of other investment options which are open to you, probably including a number you've not yet thought of.

avodavo

So they’ve said once the MPAA has been triggered it cannot be reversed.

Regarding £1800 per month contributions, that’s what I could pay in before with company contributions, tax relief etc, I think now it will be more like £600.

I’m speaking to an IFA on Friday so hopefully we can sort something out, and then there’s HMRC to deal with…..