New MPAA

jim8888

I'm thinking of using the new MPAA allowance to top up my SIPP. I don't have any income apart from pension income that I take. Do I need to inform anyone - HMRC, other pension providers - that I'm doing this? 

Bimbly

jim8888 said:

I don't have any income apart from pension income that I take.

This will limit you to how much money you can put into a SIPP. As you have no earnings, you are limited to adding £2,880 into a SIPP which will be topped up to £3,600 with tax relief. 

Pension income does not count as earnings, so the increase in the MPAA is not relevant to you.

Dazed_and_C0nfused

jim8888 said:

I'm thinking of using the new MPAA allowance to top up my SIPP. I don't have any income apart from pension income that I take. Do I need to inform anyone - HMRC, other pension providers - that I'm doing this? 

It doesn't apply to you though.

You will be limited by the lower £3,600 limit relevant to non (or very low) earners.

dunstonh

jim8888 said:

I'm thinking of using the new MPAA allowance to top up my SIPP. I don't have any income apart from pension income that I take. Do I need to inform anyone - HMRC, other pension providers - that I'm doing this? 

There are multiple allowances for pension contributions.  The annual allowance, the MPAA, the non-earners/low earners limit and your earned income along with tapering for high earners.      You have to check if any of them apply to you.  Not just one.

You are affected by the non-earner limit of £3,600.   So, that is the maximum pension contribution you can make.   You don't get as high as the MPAA as you do not have earned income.

jim8888

Once again the MSE forum prevents me from making an unforced error  Thanks everyone.