Pensions and ISAS - Reminder

[MarillionFan]

This week is a Bank Holiday so you've only got up until the 2nd (not the 5th this year) to make sure you've topped up your pensions and taken out your ISAS. Don't get caught out.

MF in helpful mode.

[Gumbo Robot]

This week is a Bank Holiday so you've only got up until the 2nd (not the 5th this year) to make sure you've topped up your pensions and taken out your ISAS. Don't get caught out.

MF in helpful mode.

Never mind that - today is my year end so do I transfer a big wedge into my co. pension or keep the money & take the hit?

[SimonMac]

This week is a Bank Holiday so you've only got up until the 2nd (not the 5th this year) to make sure you've topped up your pensions and taken out your ISAS. Don't get caught out.

MF in helpful mode.

One step ahead of you! I am waiting for Tuesday as I have maxed out this years ISA and having it sat in my regular savings account is too tempting

[SimonMac]

This week is a Bank Holiday so you've only got up until the 2nd (not the 5th this year) to make sure you've topped up your pensions and taken out your ISAS. Don't get caught out.

MF in helpful mode.

Although if you were being really helpful you would say that you need to move it into anything other than a cash ISA, as with the new rules there is no longer a disadvantage keeping cash in a normal account

[VectraMan]

Just wondering whether it's worth going overdrawn for a week to get up to the ISA limit for the year.

Probably is.

[MarillionFan]

Although if you were being really helpful you would say that you need to move it into anything other than a cash ISA, as with the new rules there is no longer a disadvantage keeping cash in a normal account

Actually just found that Standard Life will be open on Friday. Still waiting for the funds to come in from a remortgage which should land tomorrow, then I'm making a payment of £112K to standardlife, government will put £28k to top it to £140k and I get back a tax rebate of £35k in May from my self assessment.


£63k for nothing. Sweet.

[MarillionFan]

Just wondering whether it's worth going overdrawn for a week to get up to the ISA limit for the year.

Probably is.

I think it is.

[SimonMac]

Actually just found that Standard Life will be open on Friday. Still waiting for the funds to come in from a remortgage which should land tomorrow, then I'm making a payment of £112K to standardlife, government will put £28k to top it to £140k and I get back a tax rebate of £35k in May from my self assessment.


£63k for nothing. Sweet.

Depends what the mortgage rate is I guess, borrowing to put into a pension can be risky, and I assume as you are putting in so much you haven't added anything for the past three years?

What's your strategy as it seems random to me, don't pay anything in for a while than add a large lump sum of money you don't actually have to begin with?!

[MarillionFan]

Depends what the mortgage rate is I guess, borrowing to put into a pension can be risky

Not really. If you think about it, I've got some BTL property I own outright. I've taken a remortgage on the house I built for 87k @ 2% and then effectively going to use 77k of that to get back 63k in tax I've paid as a permie but pop it in a pension(carried forward), something I could have never have done at that rate as a contractor. As a contractor I didn't use up my allowances in 11/12, 12/13 & partly in 13/14.


Then next year I'm swapping the whole lot to a SIPP so I can buy some commercial property and set up some shops again & go back part time contracting.


I thought it was a genius move. My pension pot just went up from 100k to 240k in one move.

[SimonMac]

Not really. If you think about it, I've got some BTL property I own outright. I've taken a remortgage on the house I built for 87k @ 2% and then effectively going to use 77k of that to get back 63k in tax I've paid as a permie but pop it in a pension(carried forward), something I could have never have done at that rate as a contractor. As a contractor I didn't use up my allowances in 11/12, 12/13 & partly in 13/14.


Then next year I'm swapping the whole lot to a SIPP so I can buy some commercial property and set up some shops again & go back part time contracting.


I thought it was a genius move.

Your numbers are all wrong, you are not getting £63k back, you are getting £35k, the £28K you may get back (and potentially more when you retire), also if you are using £77k of the mortgage that means to add £112k where is the other £35k coming from? Or have you counted the £35k you will be getting back twice?

At best you are only at the same place you started cash in hand wise, but with a mortgage and a bigger pension pot.