PLEASE HELP ..... I've been looking for an answer to this one for years : I work part time .. I rent and I have a works pension (ages 60) From what I can gather, the poverty trap means that I could well end out up being worse off than if I was on pension credit Because I'd loose out on numerous benefits like cold weather payments, opticians and dentists HOW CAN I AVOID BEING WORSE OFF THAN PEOPLE WHO DON'T PAY INTO A PENSION PLEASE ?
You can usually only pay voluntary contributions for the past 6 years. Would be best to contact HMRC on that one -www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-employees-and-individuals
If you're a higher rate tax payer, contribute to a SIPP, and then you fill in a tax return, do you get the additional tax relief paid in cash to you, or is it paid into your SIPP?
@@MattRoutledge_FP hmmm interesting! I've recently increased my pension contributions through my employer's scheme, which I then transfer to my SIPP every 6-12 months. I did this in order to minimise my paperwork (no tax return needed), but I might need to reconsider this plan next tax year.
@@MattRoutledge_FP I don't get this - You Pay taxed income into your SIPP, they give you the tax relief back, you then put the tax relief into the SIPP and you get the 'tax relief' back on money that wasn't taxed - have we just discovered an infinite money glitch?
