Benefits of topping up

Marcon

smallzoo2 said:

I asked my previous accountant who I used in those years and he said the NI was paid so I would have to talk to NI advisors in HMRC and ask why... I see a long conversstion coming !

Do you have documentary evidence? No point I having a conversation unless you've got a means of demonstrating that was what happened.

smallzoo2 said:

Sorry to question this... I did some maths



Based on your figures then over 20 years I would make an extra £2880... ( although isnt that before tax )

In order to find the first two AVC's you mention to take it up to 221 I would have to raid one of my small pensions and because I have already taken the tax free amount out then I would have to take out £1920 to get the £1600 AVC's

Be aware that you will trigger the Money Purchase Annual Allowance, limiting your contributions to a DC scheme to £10K a year (including tax relief and any employer contributions) for all future tax years). That may not matter unless you are likely to be in a position to make contributions at that sort of level or above.