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Youngsters looks away. Pension question.
- Stevo1987
- Senior Member
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- Location: Breckland, Norfolk
Youngsters looks away. Pension question.
I wouldn't normally post this sort of question here but I am struggling to find an answer. I also know there are few, ahem, older Zedders on this forum. The question - I am going to pay a lump sum into my work pension. How do I claim the tax relief? Do I just fill in tax return?
2014 Z4 e89 35is in mineral grey.
2012 Audi TTS in Ibis white.
2012 Audi TTS in Ibis white.
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- Lifer
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Youngsters looks away. Pension question.
Your work pension should automatically add on basic rate tax relief and if you are a higher rate tax payer, you claim the difference on your tax return.
2003 Maldives Blue 3.0i auto
Previously: Maldives Blue 2.5i manual (its back!) and another, and a Monaco Blue 3.0Si coupe
Previously: Maldives Blue 2.5i manual (its back!) and another, and a Monaco Blue 3.0Si coupe
- Stevo1987
- Senior Member
- Posts: 1204
- Joined: Sun Nov 17, 2019 11:08 pm
- Location: Breckland, Norfolk
Youngsters looks away. Pension question.
They do on monthly contributions aka paye but it different on a one off lump sum. But yeah, I think I will have to do a tax return even though I am paye.
2014 Z4 e89 35is in mineral grey.
2012 Audi TTS in Ibis white.
2012 Audi TTS in Ibis white.
- Mr Tidy
- Legend
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- Location: North West Surrey
Youngsters looks away. Pension question.
Yes I paid monthly AVCs for years and it was all done PAYE, but there was an upper limit to how much I could contribute - IIRC it was 15% of annual salary in any one tax year.
So there may also be a limit to how much you can get tax relief on.
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Gone - Montego Blue
Gone - Ruby Black
Current - Silver Grey MC, Imola Red heated Nappa & carbon trim. Aeros, H & R Coil-overs, 224s, OE Strut brace, Nav, cup-holders, DSP Hi-Fi, pdc, cruise, MFSW, no CDV! E90 330i daily
Gone - Montego Blue
Gone - Ruby Black
- Stevo1987
- Senior Member
- Posts: 1204
- Joined: Sun Nov 17, 2019 11:08 pm
- Location: Breckland, Norfolk
Youngsters looks away. Pension question.
For me it is £40k.
2014 Z4 e89 35is in mineral grey.
2012 Audi TTS in Ibis white.
2012 Audi TTS in Ibis white.
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- Lifer
- Posts: 3395
- Joined: Tue Sep 29, 2020 10:37 pm
- Location: North Hampshire
Youngsters looks away. Pension question.
Pension rules are complicated. You may be able to put in more than £40k if you haven’t used up previous years’ allowances. To answer your original question more succinctly, you’ll defo have to complete a tax return if you want to claim anything other than basic rate tax relief.
2003 Maldives Blue 3.0i auto
Previously: Maldives Blue 2.5i manual (its back!) and another, and a Monaco Blue 3.0Si coupe
Previously: Maldives Blue 2.5i manual (its back!) and another, and a Monaco Blue 3.0Si coupe
- Tommo61
- Member
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- Location: Tring, Hertfordshire
Youngsters looks away. Pension question.
Can you get your employer to make the payment directly from your pre-tax earnings? If so, there will be no tax deducted, the money will get invested without any delays or need for you to reclaim.
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- Stevo1987
- Senior Member
- Posts: 1204
- Joined: Sun Nov 17, 2019 11:08 pm
- Location: Breckland, Norfolk
Youngsters looks away. Pension question.
I think they can do that but I am going to, ahem, max it out. I just turned 58 and having the money sat in my savings account is pointless so I think putting into the pension would be the best bet. In a couple of years and I will be thinking of retiring. I will approach my company and ask to work only 3 days a week in the first instance though. Whether they will go with that I dunno. I do have a cunning plan up my sleeve.
2014 Z4 e89 35is in mineral grey.
2012 Audi TTS in Ibis white.
2012 Audi TTS in Ibis white.
- Tommo61
- Member
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- Location: Tring, Hertfordshire
Youngsters looks away. Pension question.
Ah, ok. I was able to to that with a redundancy payment a few years ago and count back 4 years to use up all my allowances. Fortunately I managed to convince the payroll people to do it directly.Stevo1987 wrote: ↑Sun Feb 14, 2021 11:17 pmI think they can do that but I am going to, ahem, max it out. I just turned 58 and having the money sat in my savings account is pointless so I think putting into the pension would be the best bet. In a couple of years and I will be thinking of retiring. I will approach my company and ask to work only 3 days a week in the first instance though. Whether they will go with that I dunno. I do have a cunning plan up my sleeve.
E85 3.0l si auto Midnight/Beige
E85 3.0l si man Sapphire/Beige (gone)
E85 3.0l si man Sapphire/Beige (gone)
- Rucky
- Member
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Youngsters looks away. Pension question.
No disrespect to anybody on here but getting pension advice from a forum is probably not the best way forward......
Would you ask a Z4 owning pension advisor how to change your front suspension - probably not?
Whilst I agree there is the facility on your tax return there are Smarter ways to get advice that need not costa fortune.
Having taken early retitrement and a severance package in combination with a 40 yr pension whilst I knew what I wanted to do with the money (SIP) I still paid (NFU ) advisor to find the most tax effective route rather than risk additional (avoidable) tax.
Its not just what you put in - it is also what you might want to take out when the time comes?
Good luck
Would you ask a Z4 owning pension advisor how to change your front suspension - probably not?
Whilst I agree there is the facility on your tax return there are Smarter ways to get advice that need not costa fortune.
Having taken early retitrement and a severance package in combination with a 40 yr pension whilst I knew what I wanted to do with the money (SIP) I still paid (NFU ) advisor to find the most tax effective route rather than risk additional (avoidable) tax.
Its not just what you put in - it is also what you might want to take out when the time comes?
Good luck
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X5 and assorted motorbikes
07 3.0si Silver Grey M Sport pak.
X5 and assorted motorbikes
- Stevo1987
- Senior Member
- Posts: 1204
- Joined: Sun Nov 17, 2019 11:08 pm
- Location: Breckland, Norfolk
Youngsters looks away. Pension question.
Well, this true I guess. This is a bit like having a chat in the pub. (remember pubs ) I will speak to HRMC. If I can get through.Rucky wrote: ↑Mon Feb 15, 2021 11:20 am No disrespect to anybody on here but getting pension advice from a forum is probably not the best way forward......
Would you ask a Z4 owning pension advisor how to change your front suspension - probably not?
Whilst I agree there is the facility on your tax return there are Smarter ways to get advice that need not costa fortune.
Having taken early retitrement and a severance package in combination with a 40 yr pension whilst I knew what I wanted to do with the money (SIP) I still paid (NFU ) advisor to find the most tax effective route rather than risk additional (avoidable) tax.
Its not just what you put in - it is also what you might want to take out when the time comes?
Good luck
2014 Z4 e89 35is in mineral grey.
2012 Audi TTS in Ibis white.
2012 Audi TTS in Ibis white.
- M1k3yC
- Member
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- Joined: Tue Aug 06, 2019 6:38 pm
- Location: Stafford
Youngsters looks away. Pension question.
I suggest you also speak to your HR department and pension provider. My pension provider would answer this question and talk through the options and mechanics of it at no cost. Advice from my pension provider, however, would be terrifyingly expensive.
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2018 F56 Mini JCW
2016 MX-5 2.0 Sport Recaro
Gone to a good home: 2007 E86 3.0Si Sport