There's a newer version of that Pension guide

[stonehenge]

Covers the risks with open years (see last page).

https://www.contractoruk.com/forums/...g-vs-lc19.html

[here4beer]

Covers the risks with open years (see last page).

https://www.contractoruk.com/forums/...g-vs-lc19.html

So, it a nut shell, using that example:

Your total outstanding loans are £100,000, and your other income in 2018/19 is £50,000.
You can contribute up to £150,000 to your pension, but you only need to contribute £138,150
(£150,000 - £11,850) to reduce tax to zero.
This is the gross figure. For a personal pension, you would pay in £110,520, and the pension
provider would reclaim the basic rate tax of £27,630 from HMRC.
You would have to pay £27,630 through self-assessment but, as the pension provider had already
reclaimed this, the net position is you would not pay any tax at all.
In contrast, without the pension contibutions, your tax bill would have been £53,100.

Instead of paying a £53,000 tax bill to HMRC - you pay £110,520 into a pension and £27,650 to HMRC? Leaving your pension pot (and total outlay) at £138,150?

[stonehenge]

Instead of paying a £53,000 tax bill to HMRC - you pay £110,520 into a pension and £27,650 to HMRC? Leaving your pension pot (and total outlay) at £138,150?

I think so. Sweet isn't it.

[CanPayButWouldRatherNot]

for those of us with bigger loans than 150 and zero income ....interested in a worked example of this scenario

[here4beer]

I think so. Sweet isn't it.

Hmm. I've been told no by my TA. I'll ask again now I'm a paying client and not just 'fishing for info'.

Does this still count as being settled?

Edit - ah, is there some rule that stops you paying in more than your salary? Ie, i can't be on £11k per year, then stuff £40k into a pension?

[starstruck]

Hmm. I've been told no by my TA. I'll ask again now I'm a paying client and not just 'fishing for info'.

Does this still count as being settled?

Edit - ah, is there some rule that stops you paying in more than your salary? Ie, i can't be on £11k per year, then stuff £40k into a pension?

It’s loans+salary (net relevant earnings) that you cannot pay more than

Not ”settled” unless all your years are closed- they will still pursue open years

[here4beer]

It’s loans+salary (net relevant earnings) that you cannot pay more than

Not ”settled” unless all your years are closed- they will still pursue open years

I see, that's the key bit of info i was missing. Have a 'like'.

[ric_77]

Would i be elligible for this option, loans between 2009-2015 (all open) with a calculated settlment sum of 30k?

[starstruck]

Would i be elligible for this option, loans between 2009-2015 (all open) with a calculated settlment sum of 30k?

It's only really for people with closed years because it doesn't stop the underlying enquiry that you have

[passerby]

It's only really for people with closed years because it doesn't stop the underlying enquiry that you have

are you sure.

Someone with open year could well opt for the loan charge, offset it (fully or partially) with a pension contribution, the full loan loan charge would still count as a down payment for the open years.

This is how I understand it although i am far from an expert.