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    • nxdmsandkaskdjaqd
    • By nxdmsandkaskdjaqd 3rd Jan 17, 8:39 AM
    • 604Posts
    • 83Thanks
    nxdmsandkaskdjaqd
    Paying 2880 into pension when retired
    • #1
    • 3rd Jan 17, 8:39 AM
    Paying 2880 into pension when retired 3rd Jan 17 at 8:39 AM
    Jamesd wrote in another thread the following:
    "She can make 720 a year tax free by paying 2880 net into a pension, having it grossed up to 3600 then withdrawing it. Can only do the withdrawing part from age 55. Can only pay in for this until age 75."

    I have just retired at 60 and have transferred my DC pension to a new SIPP. I plan to live off savings till state pension kicks in.

    I am correct that the above approach should be part of my strategy of being tax efficient?
    Last edited by nxdmsandkaskdjaqd; 03-01-2017 at 10:14 AM.
Page 48
    • Dazed and confused
    • By Dazed and confused 15th Jan 20, 4:17 PM
    • 6,140 Posts
    • 3,265 Thanks
    Dazed and confused
    You enter 2,700 (and if tax was deducted enter that in the appropriate box).

    There is nowhere to enter the TFLS as that is not taxable income.
    • Audaxer
    • By Audaxer 15th Jan 20, 4:20 PM
    • 1,991 Posts
    • 1,237 Thanks
    Audaxer
    I have just spoken to HL. They say UFPLS was the method of withdraw.

    So 3,600 taxable pension income gets put on the tax return, is that correct?
    Originally posted by nxdmsandkaskdjaqd
    No, you withdrew 3,600 but only 2,700 was taxable pension income, so that means you should put 2,700 in Box 11. As you are not a tax payer, no tax should have been taken off that amount, so you should be putting 0.00 in Box 12.
    • Dazed and confused
    • By Dazed and confused 15th Jan 20, 4:30 PM
    • 6,140 Posts
    • 3,265 Thanks
    Dazed and confused
    But if it was the first payment then tax may well have been deducted.

    And even if it has subsequently been repaid by HMRC you still include it on the Self Assessment return.

    And include details of the HMRC repayment in the relevant box.
    • nxdmsandkaskdjaqd
    • By nxdmsandkaskdjaqd 15th Jan 20, 4:57 PM
    • 604 Posts
    • 83 Thanks
    nxdmsandkaskdjaqd
    Audaxer, Dazed and confused

    Thanks for all your help on this. Sorry it took so long.
    • Audaxer
    • By Audaxer 15th Jan 20, 7:08 PM
    • 1,991 Posts
    • 1,237 Thanks
    Audaxer
    Audaxer, Dazed and confused

    Thanks for all your help on this. Sorry it took so long.
    Originally posted by nxdmsandkaskdjaqd
    That's okay. I've just noticed that it was you who started this thread 3 years ago. I had assumed you had just joined in a couple of days ago to ask your question. It was a couple of years ago that I came across the thread for the first time and I found a lot of the responses really helpful.
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