Calculating my annual allowance - savings interest? Redundancy?

What_time_is_it

Thanks both for clarifying.

So, if all of “my” contributions were salary sacrificed this year, then I have technically not contributed anything at all yet? So I could put up to the full £12,500 (my taxable earnings this year) into a SIPP?

I can ignore my savings interest earned this year, and the amount I’ve Sal Sacced into pensions, and the Annual Allowance of £60k won’t be a problem… my limit on how much I can put into a pension this year is my taxable income for the year? £12.500. Full stop.

Is that it??!

edit - amazing advice and incredible patience with my lack of understanding! Thanks so much!!!

QrizB

What_time_is_it said:

Is that it??!

Seems like it!

AlanP_2

What_time_is_it said:

Thanks both for clarifying.

So, if all of “my” contributions were salary sacrificed this year, then I have technically not contributed anything at all yet? So I could put up to the full £12,500 (my taxable earnings this year) into a SIPP?

I can ignore my savings interest earned this year, and the amount I’ve Sal Sacced into pensions, and the Annual Allowance of £60k won’t be a problem… my limit on how much I can put into a pension this year is my taxable income for the year? £12.500. Full stop.

Is that it??!

edit - amazing advice and incredible patience with my lack of understanding! Thanks so much!!!

Don't forget that £12,500 is the GROSS value so you would pay in £10,000 and the pension company would get £2,500 Basic Rate tax relief from HMRC on your behalf and add that into your pension pot.

What_time_is_it

Amazing. Thanks so much guys.

i will now look around to find a company or platform that I can set up a SIPP with and out in £10,000 this tax year and a further £2,880 after April 6th. I hear that Vanguard are a decent starting point? Or Hargreaves Landsdowne?

MallyGirl

Vanguard only allow you to invest in their products. May be fine.
HL are generally thought of as expensive but they charge a percentage of the value so the numbers would be small at the outset

What_time_is_it

Thanks @MallyGirl
Anyone else you would recommend?

MallyGirl

maybe try here:

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions

I am not making any recommendations - I have only used Interactive Investor and their fixed fee would be very expensive for the amount you are talking about