Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Swan1305
    • By Swan1305 17th Mar 17, 11:43 AM
    • 3Posts
    • 0Thanks
    Swan1305
    Pensions vs ISAs - Tax Write Off?
    • #1
    • 17th Mar 17, 11:43 AM
    Pensions vs ISAs - Tax Write Off? 17th Mar 17 at 11:43 AM
    Advice needed please! Both me and my partner are currently self employed but don't have any kind of pension or savings scheme (we are 44 and 47). To be honest, we wouldn't have much to put in either but, with the new tax year drawing to a close, I was wondering if we could take some of the money that the tax man will get and put it into a pension or ISA, that will benefit us in the future, instead of giving it away?

    Forgive my stupidity but is there a way these payments could be written off, just as a business expense would be? If so, where would I start to find the best option?

    Thanks so much for any advice you could offer to a tax simpleton!
Page 1
    • Victor the Gink
    • By Victor the Gink 17th Mar 17, 12:51 PM
    • 153 Posts
    • 286 Thanks
    Victor the Gink
    • #2
    • 17th Mar 17, 12:51 PM
    • #2
    • 17th Mar 17, 12:51 PM
    If what you were proposing were allowed, nobody would pay tax, ever. You are free to save money in an ISA, but you have to also pay the tax you owe - your savings are not an allowable expense.
    • NoMore
    • By NoMore 17th Mar 17, 1:20 PM
    • 143 Posts
    • 117 Thanks
    NoMore
    • #3
    • 17th Mar 17, 1:20 PM
    • #3
    • 17th Mar 17, 1:20 PM
    If what you were proposing were allowed, nobody would pay tax, ever. You are free to save money in an ISA, but you have to also pay the tax you owe - your savings are not an allowable expense.
    Originally posted by Victor the Gink
    Pensions are subject to tax relief and as such would be a vehicle for the OP to do what he wants, as long as he doesn't exceed his annual allowance.
    • Dazed and confused
    • By Dazed and confused 17th Mar 17, 6:36 PM
    • 1,384 Posts
    • 568 Thanks
    Dazed and confused
    • #4
    • 17th Mar 17, 6:36 PM
    • #4
    • 17th Mar 17, 6:36 PM
    Pensions may be subject to tax relief but for the self employed on lowish income (guessing this based on op) they don't alter the amount of tax due.

    Yes relief at source will increase the amount in the pension fund but this doesn't normally have any impact on the self assessment tax liability of the self employed individual
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,837Posts Today

8,813Users online

Martin's Twitter
  • RT @Emloy93: @MartinSLewis I did this! It 100% works ????????

  • RT @Photo_Pete: @MartinSLewis Thanks Martin, I'll renew mine before my 24th in September!

  • Tell any 23 yr olds... you're allowed to buy a 3 year 16-25 railcard the day before your 24th birthday then it's valid until ur almost 27 RT

  • Follow Martin