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Where Taxpayers and Advisers Meet

pension payments

spotthedog
Posts:3
Joined:Mon Jan 09, 2017 12:17 am
pension payments

Postby spotthedog » Mon Jan 09, 2017 12:23 am

Hi I was wondering if its posible to reduce my tax bill by paying int a pension ... this would be for the tax year 2015/16...I am a sole trader ..any help would be great .remenbering this would be a previous tax year as this is 2016/17..thanks george ..

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Re: pension payments

Postby Lambs » Mon Jan 09, 2017 12:30 am

Hi S,

You cannot 'backdate' a pension contribution made now to an earlier year. You used to be able to up until about a decade ago. The only thing you can backdate now is a charitable donation, in some circumstances.

What you MAY be able to do, which is of some potential benefit, is to reduce your 2016/17 payments on account, which are generally due on 31/01/17 and 31/07/17 by reference to a projected reduction in liability, by virtue of pension contributions you expect to make by 5 April 2017 that will potentially reduce your exposure to Higher Rate tax for 2016/17.

There is a model you can use at

http://taxationweb.azurewebsites.net/Pe ... debug=true

to project how pension contributions will affect your position for the current or indeed future years. Do please note, however, that you will suffer interest on any amounts you have cut down, that ultimately prove to be due.

Kind regards,

Lambs

spotthedog
Posts:3
Joined:Mon Jan 09, 2017 12:17 am

Re: pension payments

Postby spotthedog » Mon Jan 09, 2017 12:50 am

Thanks you have been straight to the point and answered everything asked. Thanks George

Lambs
Posts:1611
Joined:Wed Aug 06, 2008 3:15 pm

Re: pension payments

Postby Lambs » Mon Jan 09, 2017 12:53 am

Most welcome.

Lambs


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