Anyone overpaying pension to maximise UC, then fill SA101 at end of year?

justwhat

Anyone overpaying pension to maximise UC, then fill SA101 at end of year? 

NedS

Probably. Did you have a question? You will probably need to be more specific in the advice you are looking for.

justwhat

Sticking to the tax relief threshold for pension contributions , does not reduce the amount of income that is taken into account in assessing your award to zero.

I assume to reduce to zero i need to overpay pension then fill in SA101.
 

michaels

What is the SA101 needed for - if you are a higher rate taxpayer?

justwhat

michaels said:

What is the SA101 needed for - if you are a higher rate taxpayer?

We are not higher rate tax payers(20%), I assume SA101 will need filled out as you may  have had too much tax relief on your pension contributions?(you would need to contribute full net/take home pay to pension to get to zero?)

michaels

justwhat said:

michaels said:

What is the SA101 needed for - if you are a higher rate taxpayer?

We are not higher rate tax payers(20%), I assume SA101 will need filled out as you may  have had too much tax relief on your pension contributions?(you would need to contribute full net/take home pay to pension to get to zero?)

I see, because UC is assessed on net contributions not gross.  I have exceeded my income in the past on grossed up pension contributions but was dong a tax return anyway where they recovered the overpaid tax relief.  Previously some sipp providers were able to not add the tax relief but for example Fidelity stopped allowing this several years ago, not sure if any still do.

It does not apply if you have dependent children as no point going below £693pm if you do.

Spoonie_Turtle

michaels said:

justwhat said:

michaels said:

What is the SA101 needed for - if you are a higher rate taxpayer?

We are not higher rate tax payers(20%), I assume SA101 will need filled out as you may  have had too much tax relief on your pension contributions?(you would need to contribute full net/take home pay to pension to get to zero?)

It does not apply if you have dependent children as no point going below £693pm if you do.

That's the work allowance for someone not claiming help with housing costs.  If they are, then it's currently £404 per month.

justwhat

married couple , no children and no health conditions. So no work allowance.