Pensions and ISAS - Reminder

[d000hg]

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

Probably is.

With the limit being so high (£15k) now it doesn't seem that big a deal to me.

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.

Thanks

But, can't you make pension contributions retrospectively? Or is that only company pensions?

[MarillionFan]

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.

Numbers are correct.


When you make a payment, 20% is added by the pension company(government)


So to pay in £140k, you actually pay in £112k. £28k is added when you pay in.


Then because I pay 45% tax as a permie. I can claim back the other 25%, which is £35k (actually it's slight less based on my earning). I get that back as a rebate.


Calculator is here. Pension tax relief calculator | Hargreaves Lansdown


I did it last year but with £30k, paid in £24k got £6k back as I was on a 40% bracket.


I have the other £35k in the bank, I've got to pay it out first before getting it back via self assessment.

[unixman]

I can't wait to schlepp all that cash into a 1% ISA.

When the banksters get a whiff of Gideon's forthcoming interest tax break, they will simply drop their rates accordingly. The tax break is really just another subsidy to the banks.

[MarillionFan]

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.

Just back to a nice big fat check from HMRC. As expected, all of my numbers were spot on.

Pity this is the last year you'll get tax relief at the higher rate. ******* Tories.