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
    • pip895
    • By pip895 3rd Dec 17, 3:20 PM
    • 445Posts
    • 254Thanks
    pip895
    Have I missed the boat?
    • #1
    • 3rd Dec 17, 3:20 PM
    Have I missed the boat? 3rd Dec 17 at 3:20 PM
    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?
Page 1
    • Malthusian
    • By Malthusian 3rd Dec 17, 3:48 PM
    • 3,433 Posts
    • 5,260 Thanks
    Malthusian
    • #2
    • 3rd Dec 17, 3:48 PM
    • #2
    • 3rd Dec 17, 3:48 PM
    Yes, unfortunately. Earned income can't be carried forward.
    • pip895
    • By pip895 4th Dec 17, 5:09 AM
    • 445 Posts
    • 254 Thanks
    pip895
    • #3
    • 4th Dec 17, 5:09 AM
    • #3
    • 4th Dec 17, 5:09 AM
    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
    • By BoGoF 4th Dec 17, 6:00 AM
    • 2,692 Posts
    • 1,935 Thanks
    BoGoF
    • #4
    • 4th Dec 17, 6:00 AM
    • #4
    • 4th Dec 17, 6:00 AM
    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
    • By Tight Fart 4th Dec 17, 7:45 AM
    • 15 Posts
    • 0 Thanks
    Tight Fart
    • #5
    • 4th Dec 17, 7:45 AM
    • #5
    • 4th Dec 17, 7:45 AM
    But you haven't earn't anything until you get paid?
    • BoGoF
    • By BoGoF 4th Dec 17, 11:50 AM
    • 2,692 Posts
    • 1,935 Thanks
    BoGoF
    • #6
    • 4th Dec 17, 11:50 AM
    • #6
    • 4th Dec 17, 11:50 AM
    But you haven't earn't anything until you get paid?
    Originally posted by Tight Fart

    You have on the accruals basis that applies to the self-employed
    • mgdavid
    • By mgdavid 4th Dec 17, 2:11 PM
    • 5,276 Posts
    • 4,459 Thanks
    mgdavid
    • #7
    • 4th Dec 17, 2:11 PM
    • #7
    • 4th Dec 17, 2:11 PM
    But you haven't earn't anything until you get paid?
    Originally posted by Tight Fart
    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).
    A salary slave no more.....
    • pip895
    • By pip895 4th Dec 17, 7:12 PM
    • 445 Posts
    • 254 Thanks
    pip895
    • #8
    • 4th Dec 17, 7:12 PM
    • #8
    • 4th Dec 17, 7:12 PM
    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?
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

194Posts Today

1,498Users online

Martin's Twitter
  • I realised I forgot in my links earlier. 1. Help to Buy ISAs, how they work and best buys...? https://t.co/BSCNPeqiVF

  • RT @whatdawndid: Thanks to uncle @MartinSLewis I just received £200 back, just like that from the student loan company! Turns out that the?

  • RT @LaraLewington: Shocked and saddened by Cheggers news. Working with him on It?s A Knockout was my 1st job in telly when I was just 19. H?

  • Follow Martin