2023-24 SIPP contribution

C_Mababejive

Hi all,

As we near the close off of the 23/24 tax year I'm just trying to tidy things up and of course want to make the most of tax reliefs and remain within the 20% band.

I just need to check my sums as math's is not my strong point.

So

Total earnings from all sources (paye,divs,interest etc) 68285.13

The way i have it is;

Deduct personal allowance leaves 55717.13

Deduct the amount attributable to 20% band so deduct 37699

This leaves 18018.13

So make a nett pension contribution of 14415.20

Does this look right or is it garbage ??

Thanks all

Marcon

C_Mababejive said:

Hi all,

As we near the close off of the 23/24 tax year I'm just trying to tidy things up and of course want to make the most of tax reliefs and remain within the 20% band.

I just need to check my sums as math's is not my strong point.

So

Total earnings from all sources (paye,divs,interest etc) 68285.13

The way i have it is;

Deduct personal allowance leaves 55717.13

Deduct the amount attributable to 20% band so deduct 37699

This leaves 18018.13

So make a nett pension contribution of 14415.20

Does this look right or is it garbage ??

Thanks all

Not all of those are 'relevant earnings' for pension purposes. You can't include dividend income, or interest. The clue is in the word 'earnings'!

Any scope for carry forward?

C_Mababejive

Hmm..maybe ive not explained myself well? When i finally fill in my SA for the 23/24 year, i want to ensure that i maximise my personal savings allowance at £1000 and that divis are taxed at 8.75% . To do that , i need to remain within the basic rate tax band.

af1963

Looks about right.  If it was me I'd allow some leeway for anything I might have overlooked in interest/dividend amounts or income/ work benefits, by increasing the SIPP contribution to £15K or £16K (or more!) .  Assuming most of the income is earned income and therefore allows that level of contribution.

Marcon

C_Mababejive said:

Hmm..maybe ive not explained myself well? When i finally fill in my SA for the 23/24 year, i want to ensure that i maximise my personal savings allowance at £1000 and that divis are taxed at 8.75% . To do that , i need to remain within the basic rate tax band.

Still a bit too vague to be certain!

You refer to PAYE, which confirms you are an employee. Have you included any employer contributions (including any salary sacrifice) when working out the maximum pension contribution you can make?

C_Mababejive

Marcon said:

C_Mababejive said:

Hmm..maybe ive not explained myself well? When i finally fill in my SA for the 23/24 year, i want to ensure that i maximise my personal savings allowance at £1000 and that divis are taxed at 8.75% . To do that , i need to remain within the basic rate tax band.

Still a bit too vague to be certain!

You refer to PAYE, which confirms you are an employee. Have you included any employer contributions (including any salary sacrifice) when working out the maximum pension contribution you can make?

I havent checked my workplace pension contributions but im feeling confident that it will be nowhere near the £60k limit even with my SIPP input. One thing i have forgotten to deduct is the tax free savings allowance so that eases it a little and also the dividend allowance so i shall have to tweak my sums a little.

ColdIron

You mustn't use the PSA or dividend allowance when determining your taxable income or contributions

Marcon

C_Mababejive said:

Marcon said:

C_Mababejive said:

Hmm..maybe ive not explained myself well? When i finally fill in my SA for the 23/24 year, i want to ensure that i maximise my personal savings allowance at £1000 and that divis are taxed at 8.75% . To do that , i need to remain within the basic rate tax band.

Still a bit too vague to be certain!

You refer to PAYE, which confirms you are an employee. Have you included any employer contributions (including any salary sacrifice) when working out the maximum pension contribution you can make?

I havent checked my workplace pension contributions but im feeling confident that it will be nowhere near the £60k limit even with my SIPP input. One thing i have forgotten to deduct is the tax free savings allowance so that eases it a little and also the dividend allowance so i shall have to tweak my sums a little.

What's your PAYE income for the year, including any taxable BIK?

C_Mababejive

Marcon said:

C_Mababejive said:

Marcon said:

C_Mababejive said:

Hmm..maybe ive not explained myself well? When i finally fill in my SA for the 23/24 year, i want to ensure that i maximise my personal savings allowance at £1000 and that divis are taxed at 8.75% . To do that , i need to remain within the basic rate tax band.

Still a bit too vague to be certain!

You refer to PAYE, which confirms you are an employee. Have you included any employer contributions (including any salary sacrifice) when working out the maximum pension contribution you can make?

I havent checked my workplace pension contributions but im feeling confident that it will be nowhere near the £60k limit even with my SIPP input. One thing i have forgotten to deduct is the tax free savings allowance so that eases it a little and also the dividend allowance so i shall have to tweak my sums a little.

What's your PAYE income for the year, including any taxable BIK?

About 53k , the rest is divi income and sav int..

Marcon

C_Mababejive said:

Marcon said:

C_Mababejive said:

Marcon said:

C_Mababejive said:

Hmm..maybe ive not explained myself well? When i finally fill in my SA for the 23/24 year, i want to ensure that i maximise my personal savings allowance at £1000 and that divis are taxed at 8.75% . To do that , i need to remain within the basic rate tax band.

Still a bit too vague to be certain!

You refer to PAYE, which confirms you are an employee. Have you included any employer contributions (including any salary sacrifice) when working out the maximum pension contribution you can make?

I havent checked my workplace pension contributions but im feeling confident that it will be nowhere near the £60k limit even with my SIPP input. One thing i have forgotten to deduct is the tax free savings allowance so that eases it a little and also the dividend allowance so i shall have to tweak my sums a little.

What's your PAYE income for the year, including any taxable BIK?

About 53k , the rest is divi income and sav int..

If you have £53K of 'relevant earnings', you can make gross contributions of that amount (ie including basic rate tax relief) - BUT you need to take into account any employer contributions to ensure you aren't over the annual allowance of £60K in total to ensure your SIPP contributions are tax-relievable (and your SIPP provider might not accept them if they aren't).

Looking at your other threads, you are in a DC scheme which uses salary sacrifice, so it shouldn't be hard to work out how much cash your employer has put into your workplace scheme, either as 'their' contribution or 'yours' by salary sacrifice - both will be paid gross.

Given how late it is in the tax year, might it make sense to keep your own life simple and put a good slug of cash into your SIPP to ensure that you definitely won't be a higher rate taxpayer? If it's a bit 'more' than needed to accomplish that, does it really matter? It is possible to get a bit too obsessive about fine tuning these things...

Dazed_and_C0nfused

C_Mababejive said:

Marcon said:

C_Mababejive said:

Hmm..maybe ive not explained myself well? When i finally fill in my SA for the 23/24 year, i want to ensure that i maximise my personal savings allowance at £1000 and that divis are taxed at 8.75% . To do that , i need to remain within the basic rate tax band.

Still a bit too vague to be certain!

You refer to PAYE, which confirms you are an employee. Have you included any employer contributions (including any salary sacrifice) when working out the maximum pension contribution you can make?

I havent checked my workplace pension contributions but im feeling confident that it will be nowhere near the £60k limit even with my SIPP input. One thing i have forgotten to deduct is the tax free savings allowance so that eases it a little and also the dividend allowance so i shall have to tweak my sums a little.

Other than ISA's which are ignored for tax purposes, there is no "tax fee savings allowance" or dividend allowance.

There are 3 0% tax rates applicable to savings interest and dividends income but of you want to ensure you aren't a higher rate payer you cannot ignore chunks of taxable income.