Drawdown strategy - tax, savings interest and student finance

michaels

So I have come up with a plan based on the following constraints:

Personal allowance: 12570 - assumed to be fully utilised by state pension post SPA

Savings allowance: 1000 and 5000 (reducing 1 for 1 with taxable income over personal allowance)

Unearned income max pension contribution: 3600 - reduces income for student loan purposes

Student finance (SLC) max 'taxable income' before loan restriction £25k based on income from previous tax year (eg 23/24 for 35/36 loan).  Can ask to use current year if lower but no compulsion to if higher

University bursary criteria - variable but generally below 25k on SLC basis best, 35k cut off

TFLS - 25% (used to top up income to spending levels)

Higher Rate Threshold: 50270 (corrected, thanks) - applies once student finance and savings tax allowance (savings moved to ISA) constraints are relaxed

Can anyone think of any other issues I need to bear in mind?

Taxable pension income can also come from DB but even with early payment reduction this exceeds the personal allowance / savings allowance thresholds so won't be used until these constraints expire,

Dazed_and_C0nfused

michaels said:

So I have come up with a plan based on the following constraints:

Personal allowance: 12570 - assumed to be fully utilised by state pension post SPA

Savings allowance: 1000 and 5000 (reducing 1 for 1 with taxable income over personal allowance)

Unearned income max pension contribution: 3600 - reduces income for student loan purposes

Student finance (SLC) max 'taxable income' before loan restriction £25k based on income from previous tax year (eg 23/24 for 35/36 loan).  Can ask to use current year if lower but no compulsion to if higher

University bursary criteria - variable but generally below 25k on SLC basis best, 35k cut off

TFLS - 25% (used to top up income to spending levels)

Higher Rate Threshold: 52570 - applies once student finance and savings tax allowance (savings moved to ISA) constraints are relaxed

Can anyone think of any other issues I need to bear in mind?

Taxable pension income can also come from DB but even with early payment reduction this exceeds the personal allowance / savings allowance thresholds so won't be used until these constraints expire,

How have you calculated the higher rate threshold of 52570?

How close ar you to SPa

DRS1

Dazed_and_C0nfused said:

michaels said:

So I have come up with a plan based on the following constraints:

Personal allowance: 12570 - assumed to be fully utilised by state pension post SPA

Savings allowance: 1000 and 5000 (reducing 1 for 1 with taxable income over personal allowance)

Unearned income max pension contribution: 3600 - reduces income for student loan purposes

Student finance (SLC) max 'taxable income' before loan restriction £25k based on income from previous tax year (eg 23/24 for 35/36 loan).  Can ask to use current year if lower but no compulsion to if higher

University bursary criteria - variable but generally below 25k on SLC basis best, 35k cut off

TFLS - 25% (used to top up income to spending levels)

Higher Rate Threshold: 52570 - applies once student finance and savings tax allowance (savings moved to ISA) constraints are relaxed

Can anyone think of any other issues I need to bear in mind?

Taxable pension income can also come from DB but even with early payment reduction this exceeds the personal allowance / savings allowance thresholds so won't be used until these constraints expire,

How have you calculated the higher rate threshold of 52570?

How close ar you to SPa

To misquote Eric Morecombe he's got all  the right figures just not necessarily in the right order.

OK maybe he has 2 5s instead of 2 0s 

michaels

Dazed_and_C0nfused said:

michaels said:

So I have come up with a plan based on the following constraints:

Personal allowance: 12570 - assumed to be fully utilised by state pension post SPA

Savings allowance: 1000 and 5000 (reducing 1 for 1 with taxable income over personal allowance)

Unearned income max pension contribution: 3600 - reduces income for student loan purposes

Student finance (SLC) max 'taxable income' before loan restriction £25k based on income from previous tax year (eg 23/24 for 35/36 loan).  Can ask to use current year if lower but no compulsion to if higher

University bursary criteria - variable but generally below 25k on SLC basis best, 35k cut off

TFLS - 25% (used to top up income to spending levels)

Higher Rate Threshold: 52570 - applies once student finance and savings tax allowance (savings moved to ISA) constraints are relaxed

Can anyone think of any other issues I need to bear in mind?

Taxable pension income can also come from DB but even with early payment reduction this exceeds the personal allowance / savings allowance thresholds so won't be used until these constraints expire,

How have you calculated the higher rate threshold of 52570?

How close are you to SPa

My bad - for some reason I thought it was personal allowance plus 50k

Just under 12 years for me and 7 for DW - this may be long enough with TFLS for her to avoid all IT on her DC.

Dazed_and_C0nfused

michaels said:

Dazed_and_C0nfused said:

michaels said:

So I have come up with a plan based on the following constraints:

Personal allowance: 12570 - assumed to be fully utilised by state pension post SPA

Savings allowance: 1000 and 5000 (reducing 1 for 1 with taxable income over personal allowance)

Unearned income max pension contribution: 3600 - reduces income for student loan purposes

Student finance (SLC) max 'taxable income' before loan restriction £25k based on income from previous tax year (eg 23/24 for 35/36 loan).  Can ask to use current year if lower but no compulsion to if higher

University bursary criteria - variable but generally below 25k on SLC basis best, 35k cut off

TFLS - 25% (used to top up income to spending levels)

Higher Rate Threshold: 52570 - applies once student finance and savings tax allowance (savings moved to ISA) constraints are relaxed

Can anyone think of any other issues I need to bear in mind?

Taxable pension income can also come from DB but even with early payment reduction this exceeds the personal allowance / savings allowance thresholds so won't be used until these constraints expire,

How have you calculated the higher rate threshold of 52570?

How close are you to SPa

My bad - for some reason I thought it was personal allowance plus 50k

Just under 12 years for me and 7 for DW - this may be long enough with TFLS for her to avoid all IT on her DC.

Ok, it's either £50,270 or £53,870 for you (if you factor in £3,600 gross relief at source contribution).

Winter Fuel Payment tax charge could be relevent in due course but it's a long time away really for you.