Paying £2880 into pension when retired

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  • greenglide
    greenglide Posts: 3,301 Forumite
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    Opening one is fine, normally right up to the last day of 5th April.

    It seems to be the payments that only get made on certain dates.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    LIttleOwl wrote: »
    * You are too late to give an instruction to HL for a payment to be made this tax year.
    Originally posted by missile


    Quick question - if possible please could someone confirm does this mean it is too late to open a new SIPP for 2016/17 with HL? Thanks in advance.

    No, the two are entirely different. As you'll see on the HL website you can open one in a few minutes.
  • missile
    missile Posts: 11,684 Forumite
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    edited 22 March 2017 at 7:00PM
    So....just to clarify,'re my post above,if I request a withdrawal of anything above my 25% tax free amount from today onwards it will not be paid in tax year 16-17 ????
    Thanks.
    Correct :beer:
    In addition: Please be advised, if you request the 25% lump sum from HL today it will be paid not later than 28th April.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
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  • Just to clarify is there still time to open and make a payment of £2880 into a new Sipp with HL for 2016/17. Sorry for yet another question but thanks in advance.
  • Nationwide8
    Nationwide8 Posts: 362 Forumite
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    edited 22 March 2017 at 9:01PM
    missile wrote: »
    Correct :beer:
    In addition: Please be advised, if you request the 25% lump sum from HL today it will be paid not later than 28th April.

    OK Thanks,got it.I only knew about a SIPP and the £720 etc from this board and was "late" in the 16-17 tax year investing in one ( 9th Jan ).Next tax year hopefully will be different,just have to "watch" PA allowance.

    Can I also ask,if I withdraw eg £40 out of the rest of the SIPP over the tax free 25% will HMRC give HL my tax code from that so when I draw a larger amount at a later date in 2017 it will not be taxed ?? ( I don't have/will not have enough income to go over PA 17-18 )
  • jerrysimon
    jerrysimon Posts: 343 Forumite
    First Anniversary Combo Breaker First Post Hung up my suit!
    LIttleOwl wrote: »
    Just to clarify is there still time to open and make a payment of £2880 into a new Sipp with HL for 2016/17. Sorry for yet another question but thanks in advance.

    Yep you can open an account online and do it up to 5/4/17 but I would not leave it to the last day. I did it about a week before this date last year to put in a lump sum to cover my wife's earning for 15/16. I have been topping it up this year to again include her allowance before she gave up her main job August last year.

    I think there are charges if you empty it within the first year.


    Jerry
  • missile
    missile Posts: 11,684 Forumite
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    edited 23 March 2017 at 12:16PM
    OK Thanks,got it.I only knew about a SIPP and the £720 etc from this board and was "late" in the 16-17 tax year investing in one ( 9th Jan ).Next tax year hopefully will be different,just have to "watch" PA allowance.

    Can I also ask,if I withdraw eg £40 out of the rest of the SIPP over the tax free 25% will HMRC give HL my tax code from that so when I draw a larger amount at a later date in 2017 it will not be taxed ?? ( I don't have/will not have enough income to go over PA 17-18 )
    Your first drawdown will generate a Tax Code from HMRC. In my experience this happens quickly and you will receive a notification from HMRC.
    Please note; HL may close your account if balance falls below £1,000 and you will suffer early closure charges.
    You can avoid this issue, by drawing the balance in instalments over 12 months as was suggested to me by Jamesd.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • missile wrote: »
    Your first drawdown will generate a Tax Code from HMRC. In my experience this happens quickly and you will receive a notification from HMRC.
    Please note; HL may close your account if balance falls below £1,000 and you will suffer early closure charges.
    You can avoid this issue, by drawing the balance in instalments over 12 months as was suggested to me by Jamesd.

    Thank you,so I shouldn't get taxed on any drawdown once HL have my tax code ?? As my income definitely will not go over PA 17-18.

    Yes I did realise about leaving the £1000 in but only from this thread,the information is so helpful !!
  • missile
    missile Posts: 11,684 Forumite
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    When you transfer the balance from SIPP to SIPP drawdown the SIPP account disappears.

    You might want to monitor HL accounts and perhaps print out, before closure.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • missile
    missile Posts: 11,684 Forumite
    Name Dropper Photogenic First Post Combo Breaker
    edited 23 March 2017 at 1:05PM
    Thank you,so I shouldn't get taxed on any drawdown once HL have my tax code ?? As my income definitely will not go over PA 17-18.

    Yes I did realise about leaving the £1000 in but only from this thread,the information is so helpful !!

    Just like any other income, you will be taxed at source on drawdown until HL are issued with a tax code. You can ask for an assessment after 05th April / fill in a form to have any overpayment repaid now by HMRC.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
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