lump sum to put in pension

333rocky333

EdInvestor wrote: »

Do be aware that once money is put in a pension, you can't take it out again, other than 25% of it after you turn 55.

Apoligies
Good advice
I phrased that a bit wrong ,I wont need the money till after then hopefully ,and prepared for that.
Thanks

333rocky333

Scottish widows has said I can pay in a lump sum.

How Would I find out if the pension definately qualifys for the tax relief , as there is no point me doing this otherwise.

I have never ever put money in this pension personally,
It just consists of the money since I contracted out

On my tax returns I always only tell them the amount I have paid into my abbey,
should I have been also telling them about the s/widows pension to get tax relief on that.
Thanks in advance.

jem16

333rocky333 wrote: »

Scottish widows has said I can pay in a lump sum.

How Would I find out if the pension definately qualifys for the tax relief , as there is no point me doing this otherwise.

You will definitely get tax relief of 22% (20% from April) and this is put directly into your pension.

If you are a higher rate taxpayer you will be entitled to another 18% (20% from April) tax relief and you get this via your tax return.

According to your earlier post you have a tax code of 134L so £1340 tax-free allowances. Higher rate tax starts at £34,600 of taxable income so add that to your tax-free allowances and you are able to earn £35,940 this year before going into higher rate.

On my tax returns I always only tell them the amount I have paid into my abbey, should I have been also telling them about the s/widows pension to get tax relief on that.
Thanks in advance.

Not if you haven't been paying anything into it. It's only contributions that get tax relief not what's there already.

333rocky333

Thanks jem
Sorry not very good at my wording am I

I am still with you from earlier on how to work out how much ,again thanks to you.
This I understand I should work out pretty soon and get paid in before april.

What I am now unsure of

Should I have told them each year in the PAST years about these serp contributions as I never ever did.

So this money I manually pay in for 07/08 I will tell them on my next tax return SHOULD I also be telling them, as I am a 40% tax payer about this.

LETTER from s/widows


2007/2008
Age related rebate contribution £1,517.97
Tax Relief
The amount of basic tax relief on your share of the rebate £120.24
Total £1,638.21

I get similar letters yearly but have never put this on ANY previous tax returns

Once again jem your help is really appreciated as is all others.

jem16

333rocky333 wrote: »

Should I have told them each year in the PAST years about these serp contributions as I never ever did.

To be honest I don't know.

I would imagine that you should but don't take my word for it.

dunstonh

You remain contracted out of SERPS/S2P until you tell them to go back in again (or they tell you to). If you dont tell them to contract in, they wont.

333rocky333

Thanks again
I think I will contact the tax office to find out.