last chance to top up DC

trevjl

I finished completely last September from part time and am thinking of topping up my DC before end of the tax year as will be my last chance.
Want to check a few bits from the knowledgeable people on here before I do so to check my own figure.
Figures are,
pension gross contribution last tax year 23/24 £27K gross inc employer. (earnings in excess of the pension max)
Tax year 24/25 earnings prior to finishing £20K  
Pension contributions inc employer £6K

I am awaiting completion on my late mothers flat and if the solicitors finally get their fingers out then it should complete in time to get it done before 5th April. 

Questions are how much can I top up and I guess is it worth doing ?
I have a DB in 30 months time and have SS ISA and the DC which I planned to use prior to that but will just use the proceeds left from the flat now.

JayRitchie

How old will you be when you start the DB pension income and how much will that be? How old are you now? Would you look to draw money from a DC scheme before taking the DB income?

Dazed_and_C0nfused

trevjl said:

I finished completely last September from part time and am thinking of topping up my DC before end of the tax year as will be my last chance.
Want to check a few bits from the knowledgeable people on here before I do so to check my own figure.
Figures are,
pension gross contribution last tax year 23/24 £27K gross inc employer. (earnings in excess of the pension max)
Tax year 24/25 earnings prior to finishing £20K  
Pension contributions inc employer £6K

I am awaiting completion on my late mothers flat and if the solicitors finally get their fingers out then it should complete in time to get it done before 5th April. 

Questions are how much can I top up and I guess is it worth doing ?
I have a DB in 30 months time and have SS ISA and the DC which I planned to use prior to that but will just use the proceeds left from the flat now.

What method was used to make your contributions?

Net pay or relief at source?

If net pay is the £20k the taxable pay that was shown on your P60?

If relief at source what was the gross contribution including the pension tax relief that gets added?

trevjl

I was 62 in November and the DB NRA is 65 (about £25K)
Drawing partly from the DC and partly from the SS ISA was the plan but it is unlikely that that will be necessary now and if it is it wont be for a couple of years at least.

Sarahspangles

I’m in a similar position with a similar length of time until a DB commences. You may as well make full use of your personal allowance in the two tax years in between, in which you won’t be earning or drawing a pension. You can take £12,570 from a DC pension to use your personal allowance, plus 25% tax free which is £16,760. 

trevjl

Sarahspangles said:

I’m in a similar position with a similar length of time until a DB commences. You may as well make full use of your personal allowance in the two tax years in between, in which you won’t be earning or drawing a pension. You can take £12,570 from a DC pension to use your personal allowance, plus 25% tax free which is £16,760. 

Yes thanks, forgot to say that. 

trevjl

Dazed_and_C0nfused said:

trevjl said:

I finished completely last September from part time and am thinking of topping up my DC before end of the tax year as will be my last chance.
Want to check a few bits from the knowledgeable people on here before I do so to check my own figure.
Figures are,
pension gross contribution last tax year 23/24 £27K gross inc employer. (earnings in excess of the pension max)
Tax year 24/25 earnings prior to finishing £20K  
Pension contributions inc employer £6K

I am awaiting completion on my late mothers flat and if the solicitors finally get their fingers out then it should complete in time to get it done before 5th April. 

Questions are how much can I top up and I guess is it worth doing ?
I have a DB in 30 months time and have SS ISA and the DC which I planned to use prior to that but will just use the proceeds left from the flat now.

What method was used to make your contributions?

Net pay or relief at source?

If net pay is the £20k the taxable pay that was shown on your P60?

If relief at source what was the gross contribution including the pension tax relief that gets added?

I was on SS in the 23/24 year, but as I went 3 days a week that had to cease in the 24/25 tax year due to minimum wage thing. £20K is what shows on my PAYE bit on the HMRC website.

Dazed_and_C0nfused

trevjl said:

Dazed_and_C0nfused said:

trevjl said:

I finished completely last September from part time and am thinking of topping up my DC before end of the tax year as will be my last chance.
Want to check a few bits from the knowledgeable people on here before I do so to check my own figure.
Figures are,
pension gross contribution last tax year 23/24 £27K gross inc employer. (earnings in excess of the pension max)
Tax year 24/25 earnings prior to finishing £20K  
Pension contributions inc employer £6K

I am awaiting completion on my late mothers flat and if the solicitors finally get their fingers out then it should complete in time to get it done before 5th April. 

Questions are how much can I top up and I guess is it worth doing ?
I have a DB in 30 months time and have SS ISA and the DC which I planned to use prior to that but will just use the proceeds left from the flat now.

What method was used to make your contributions?

Net pay or relief at source?

If net pay is the £20k the taxable pay that was shown on your P60?

If relief at source what was the gross contribution including the pension tax relief that gets added?

I was on SS in the 23/24 year, but as I went 3 days a week that had to cease in the 24/25 tax year due to minimum wage thing. £20K is what shows on my PAYE bit on the HMRC website.

That looks like relief at source so you will to take them into account when calculating how much you can contribute.

Which is probably ~£16k gross (a payment of £12.8k from you).