Have I missed the boat?

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pip895
pip895 Posts: 1,178 Forumite
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in Pensions, annuities & retirement planning
Just doing my 2016-2017 tax return and I have calculated my income from consultancy (self employed) during the period and its £7500. I put £3600 (gross) into my pension but belatedly realise I could have put in more.

Have I missed the boat on this? - This years income is going to be only around 3K so I will be stuck with the minimum this year I think?

Anything I can do?

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  • Malthusian
    Malthusian Posts: 10,961 Forumite
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    Yes, unfortunately. Earned income can't be carried forward.
  • pip895
    pip895 Posts: 1,178 Forumite
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    Thanks for that I assumed that was the case.

    I have just spotted that although the work was done in 2016 some of the money wasn't received until May 2017. With that in mind I will actually have just under £5000 coming in in the current tax year. Presumably the maximum I can put in to my SIPP would be approximately (5k - expenses)x0.8. I'm assume there is no point in not subtracting the expenses as I would just be stooring up a tax liability in the future?
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    Unless you are on the cash receipts basis then any work you do is taxable in the year it was actually earned not when it was paid.
  • Tight_Fart
    Tight_Fart Posts: 77 Forumite
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    But you haven't earn't anything until you get paid?
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    Tight_Fart wrote: »
    But you haven't earn't anything until you get paid?


    You have on the accruals basis that applies to the self-employed
  • mgdavid
    mgdavid Posts: 6,706 Forumite
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    Tight_Fart wrote: »
    But you haven't earn't anything until you get paid?

    Yes you have; money is earned when the work is done. From that point onwards it is just a debt that is owed to you (accrual).
    The questions that get the best answers are the questions that give most detail....
  • pip895
    pip895 Posts: 1,178 Forumite
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    Luckily I am using the cash basis so I should be OK. Am I correct in that the max pension I can put in is Net Profit x 0.8?
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