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The Goverments New savings account.
Comments
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I set one up after i had been on the pension forum through HL, i pay £250 per month into it and they claim £60 per month from the taxman for me and add it to my account, there are no charges whatsoever, i hold it in cash, i receive emails from HL promoting their services and showing me how to invest but i wouldn't know where to start so i just leave it there and just use it as a savings account.as there is only about £2000 in it.0
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As a non tax-payer if I did open a SIP I wouldn’t be eligible for a government contribution so it would just be a savings account - is that correct?0
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No, as I said
You are not required to pay income tax in the current year to receive tax relief, see:Even non earners can make pension contributions and receive tax relief if you are under 75- Tax relief if you’re a non-taxpayer
- If you’re not earning enough to pay Income Tax, you’ll still qualify to have tax relief added to your contributions up to a certain amount. The maximum you can pay is £2,880 a year. Tax relief is added to your contribution so if you pay £2,880, a total of £3,600 a year will be paid into your pension scheme, even if you earn less than this.
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It would be worth a visit to the pension forum and have a read of the topics on there, i am not an expert but even if you don't pay tax you can still claim the £720 per year if you contribute £2880 into a Sipp,0
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