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Sipp contribution - no earnings

Adamski
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Sipp contribution - no earnings

#402855

Postby Adamski » April 9th, 2021, 11:13 am

Hi All, as now in first year of early retirement, I am not expecting any earnings from this tax year. Can someone confirm my understanding?

Can contribute £2880 (£3600 gross)?

Can pay in either lump sum or monthly - could pay all now?

Relevant earnings exclude dividends and capital gains outside of an ISA?

Mrs A has some income, so usual rules, contributions can be up to relevant earnings.

Thanks, Adam

JohnB
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Re: Sipp contribution - no earnings

#402857

Postby JohnB » April 9th, 2021, 11:29 am

£2880 possible now in a lump sum, "earnings" mean money from work, not interest, capital gains, pensions, dividends, gifts, wins on the horses etc.

Money will be credited to your account in 6 weeks ish, so you might end up with 2 trades, 12 trades for a monthly contribution seems a lot of work.

I did mine yesterday!

swill453
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Re: Sipp contribution - no earnings

#402877

Postby swill453 » April 9th, 2021, 12:26 pm

Yes, my wife and I did our £2880 contributions on 6th April. At AJBell Youinvest it needs to be in by about the 2nd of the month to get tax relief the following month, so the start of the tax year misses that. The £720 relief will be credited around 22nd June.

Scott.

Adamski
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Re: Sipp contribution - no earnings

#403014

Postby Adamski » April 9th, 2021, 9:08 pm

Thanks guys, v helpful.

Amaryllis
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Re: Sipp contribution - no earnings

#415187

Postby Amaryllis » May 26th, 2021, 12:33 am

JohnB wrote:£2880 possible now in a lump sum, "earnings" mean money from work, not interest, capital gains, pensions, dividends, gifts, wins on the horses etc.


Can SIPP contributions come from profits from rental income?

PinkDalek
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Re: Sipp contribution - no earnings

#415189

Postby PinkDalek » May 26th, 2021, 1:44 am

Amaryllis wrote:
JohnB wrote:£2880 possible now in a lump sum, "earnings" mean money from work, not interest, capital gains, pensions, dividends, gifts, wins on the horses etc.


Can SIPP contributions come from profits from rental income?


See:

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100#earnings

Noting the section on furnished holiday lettings business in case of relevance.

csearle
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Re: Sipp contribution - no earnings

#418785

Postby csearle » June 11th, 2021, 9:50 am

PinkDalek wrote:See:

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100#earnings

Noting the section on furnished holiday lettings business in case of relevance.
Helping people until the very end. RIP PD and thank you.

Chris

TheMotorcycleBoy
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Re: Sipp contribution - no earnings

#418820

Postby TheMotorcycleBoy » June 11th, 2021, 12:43 pm

Indeed, very sad. He certainly helped me out on several things.


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