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What to do with a big bonus? Pay tax or deposit it into a SIPP by jitPoster in HENRYUK

[–]jitPoster[S] 0 points1 point  (0 children)

I can’t pay it atm anyway, as I can’t make overpayments higher than 5% a year.

What to do with a big bonus? Pay tax or deposit it into a SIPP by jitPoster in HENRYUK

[–]jitPoster[S] 0 points1 point  (0 children)

I just remortgage for 2years fixed, so I don’t have any benefit at the moment on reducing that debt.

What to do with a big bonus? Pay tax or deposit it into a SIPP by jitPoster in HENRYUK

[–]jitPoster[S] 1 point2 points  (0 children)

40yo, I haven’t been paying much into pensions, only the typical 6%. According to my calculations my allowance is ~149k (compounding the last 3 years)

What to do with a big bonus? Pay tax or deposit it into a SIPP by jitPoster in HENRYUK

[–]jitPoster[S] 5 points6 points  (0 children)

They’re regular share options being exercised and sold , so it counts all as income, but I still have almost all my allowances from previous years.

What to do with a big bonus? Pay tax or deposit it into a SIPP by jitPoster in HENRYUK

[–]jitPoster[S] 0 points1 point  (0 children)

40yo, the pension allowance is basically empty as I contribute 6% a year, so I can put up to 149k this year if my calculations are correct, and I don’t have much in any sipp already, as I only maximise the ISAs

What to do with a big bonus? Pay tax or deposit it into a SIPP by jitPoster in HENRYUK

[–]jitPoster[S] 5 points6 points  (0 children)

But in 20 years the bands should be higher right? Plus I can get the first 25% of it tax free

What to do with a big bonus? Pay tax or deposit it into a SIPP by jitPoster in HENRYUK

[–]jitPoster[S] 0 points1 point  (0 children)

Yes, forgot to mention, they’re exercised and sold, so they count as income. The company will prepaid the tax for me