Paying into my SIPP???

[Kingstepper]

On withdrawal you enjoy 25% tax free and also can use your annual personal allowance to make a further £12,540 if the withdrawal tax free. So definitely worthwhile.

For a non tax-payer yes. Otherwise, not really.

[noTAGlove]

Is there anywhere that can explain how I’d go about this and how it actually works - I’m doing a bit of research but a little lost
Do I need to wait until I’m 55 (July)
I save a SIPP I started when I took VR 2 years ago (£50k) I presume I could inject into this.?

What is there to additional explain? If you have no income in the 2022-23 tax year then you are entitled to add £2880 to your pension and have it grossed up to £3600, with the extra £720 being free money contributed by the Government.

You do not have to waitThis works for everybody, at any age up to 75, even children.

Just pick up the phone to your pension company and tell them you want to add £2880 to your pension. Give them your debit card details over the phone to make payment and they will reclaim the extra £720 for you. You can ask them all this when on the phone.

Voila!

[Montello]

How does the SIPP provider know you are not over paying?

Does HMRC share our data with them?

[noTAGlove]

How does the SIPP provider know you are not over paying?

Does HMRC share our data with them?

It is your, not the providers responsibility.

HMRC have access to the data, rather than the other way around.

[lewie]

What is there to additional explain? If you have no income in the 2022-23 tax year then you are entitled to add £2880 to your pension and have it grossed up to £3600, with the extra £720 being free money contributed by the Government.

You do not have to waitThis works for everybody, at any age up to 75, even children.

Just pick up the phone to your pension company and tell them you want to add £2880 to your pension. Give them your debit card details over the phone to make payment and they will reclaim the extra £720 for you. You can ask them all this when on the phone.

Voila!

Thank you

[Montello]

Well inspired by this thread I have added to mine & my wife's SIPPs for the first time ever since we swept up all the old pensions and deposited them here: https://www.vanguardinvestor.co.uk/


At this stage the benefit over an ISA is likely to be marginal but if the rentals get sold then it will become more beneficial as we can draw down tax free and I can't see it ever being worse; only compromise is some loss of flexibility / access to funds.