Paying £2880 into pension when retired

You are forgetting your £900 tax free withdrawal. Which SIPP provider are you using? We use HL, keep the SIPP in cash, and keep a minimum £1000 balance to avoid closure charges. This way there are no charges for the two methods of withdrawing cash. So after your £720 contribution from HMRC goes in.
Method 1- Take a UFPLS of £2000 (75% taxable of £1500 + 25% tax free £500) - you will have to claim the tax taken from the £1500 back off HMRC. This leaves £1600 and you have not entered drawdown.
Method 2 - Enter flexible drawdown and take all of your tax free lump sum - £900 and from the remaining £2700, drawdown £1500 this tax year, making a total withdrawal of £2400 less tax leaving £1200 in the drawdown SIPP. Again you will have to claim tax back from HMRC. Repeat with a £2880 contribution this tax year.

missile wrote: »

Please be advised:
You can arrange to withdraw the entire SIPP drawdown account over twelve months without incurring early closure penalty.
HMRC will issue HL with a tax code and if you are below your tax threshold tax will not be deducted at source.

So as an example draw out £400 x 6 = £2400 over 12 months, leaving £1200 in sipp.
Would that be below 10k income with a PA of £11,500.
Maths & financial matters will never be my strong point.

If you are using the HL Sipp and have gone into drawdown, you need to ring HL to "reactivate" the SIPP - they will send you a message to let you know that this has been done -you will then be able to use your debit card in the normal way to contribute the £2880 and the tax relief will be added.

You can then put this into drawdown if you wish and take the PCLS - the balance is taxable as income in the year that you draw it.

missile wrote: »

Pay £2880 into a SIPP
HMRC top up to £3600
Transfer to SIPP Drawdown Account
Withdraw 25% tax free
£2700 over 12 monthly payments :T

and repeat next year

Ok thanks i will look this over.
Being a none tax payer i did not fancy filling in complicated forms to claim back tax from HMRC.

missile wrote: »

My wife is non tax payer and hates form filling. HL did all the arrangements and she did not have to contact HMRC.

There are forms to fill for HL, which is a pain. I had to do those.

We're in exactly the same situation as my wife doesn't want to have to fill in any forms either. Her only income is the State Pension and she doesn't even have a tax code. We're running it online to avoid as much as possible but after drawdown have asked for a payment of £10 after drawdown to allow HL to get a tax code so we can then calculate how much she can take out tax free in the tax year. What are your arrangements with HL to avoid your wife having to fill in any tax forms? I saw the earlier posts saying to take a number of monthly payments to avoid tax being taken but I thought emergency tax would always be taken until HL received a tax code and that tax would have to be claimed back.