Paying £2880 into pension when retired

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  • Sun-Is-Fun
    Sun-Is-Fun Posts: 243 Forumite
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    Lily1 wrote: »
    Another question, if I sent up a small monthly direct debit ( to help in my search for more dds after the Tesco change next April ). Could I then put the remainder in towards the end of the financial year by debit card?

    yes, you can do that..
  • clivep
    clivep Posts: 577 Forumite
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    Lily1 wrote: »
    Another question, if I sent up a small monthly direct debit ( to help in my search for more dds after the Tesco change next April ). Could I then put the remainder in towards the end of the financial year by debit card?

    There may be a monthly minimum for the DD.

    We have Fidelity SIPPs and I think there's a £40/month minimum. I anticipate starting a £40/month DD in April (in case I've not managed sufficient replacement Tesco ones) along with a £2,400 lump sum probably April/May depending on the stock market at the time.
  • dunroving
    dunroving Posts: 1,881 Forumite
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    Don't want to sidetrack the thread but I'm in a situation where I will possibly be limited to the £2,880 limit for people with no employment income (I just retired).

    As the SIPP provider will top up the 20% tax element from HMRC, are the following calclations correct for a DD to achieve a £2,880 SIPP contribution over teh tax year:

    £2,880 x 0.80 = £2,304
    £2,304 divided by 12 = £192

    - so if I contributed £192 by DD, I'd end up with £2,880 in the SIPP and stay within the £2,880 limit?

    Thanks!
    (Nearly) dunroving
  • pip895
    pip895 Posts: 1,178 Forumite
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    dunroving wrote: »
    Don't want to sidetrack the thread but I'm in a situation where I will possibly be limited to the £2,880 limit for people with no employment income (I just retired).

    As the SIPP provider will top up the 20% tax element from HMRC, are the following calclations correct for a DD to achieve a £2,880 SIPP contribution over teh tax year:

    £2,880 x 0.80 = £2,304
    £2,304 divided by 12 = £192

    - so if I contributed £192 by DD, I'd end up with £2,880 in the SIPP and stay within the £2,880 limit?

    Thanks!

    The gross value is £3600 the £2880 is net so drop the 0.8 bit out of your calculation.;)
  • xylophone
    xylophone Posts: 44,422 Forumite
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    You intend to start contributions from 6/4/2018?

    Why not a contribution of £240 a month starting on 6 April 2018 and taken each 6th month thereafter?

    You will then have contributed £2880 in the tax year and the provider will claim the tax relief of £720 over the year making a total of £3600.

    https://www.ft.com/content/db749266-1ea0-11e7-b7d3-163f5a7f229c
  • Mnd
    Mnd Posts: 1,699 Forumite
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    The 2880 is how much you can pay, that's why xylophone is suggesting 240 a month.tax rebate will make it up to 3600
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • mark1959
    mark1959 Posts: 553 Forumite
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    bioboybill wrote: »
    Yes, I understand she would pay tax on the £1950, but she would still get the first 25% (the £650) tax free wouldn't she?
    Yes. :beer:
  • Vortigern
    Vortigern Posts: 3,243 Forumite
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    Lily1 wrote: »
    Another question, if I sent up a small monthly direct debit ( to help in my search for more dds after the Tesco change next April ). Could I then put the remainder in towards the end of the financial year by debit card?
    clivep wrote: »
    There may be a monthly minimum for the DD.
    HL's minimum DD is £20net, equivalent to £25gross.
  • Lily1
    Lily1 Posts: 190 Forumite
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    £20 it is then, thanks.
  • Bazzh
    Bazzh Posts: 24 Forumite
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    Read through the posts regarding this subject. I am 72 retired and have a total income of £18500 gross, made up of state and company pensions. Am I right to assume I can pay £2880 into a Sipp and claim tax relief of £720 and withdraw £3550 ( £50 left in to keep account open) for the next 3 years.
    Many thanks
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