Company Final Salary Scheme - Added Years

latics0207

Hi

I have been in a company pension scheme with my primary employer for 20 years. I have a secondary job which is self employed.

Can I offset my profit on my secondary job by purchasing Added Years with my primary employer? If so, is there an online calculator which I could input all my details and it will give an estimate of the instalments or lump sums needed?

Many thanks John
:beer:

dunstonh

why do you need the income from your other job to by added years? Are the contributions likely to be that big?

latics0207

The main point is to pay less tax on my self employment income. The extra payments to my company pension scheme would also have government tax relief making it a double gain. I believe that I can only buy an additional 4 added years as that will be 40 years of contributions.

Ian_W

Perhaps I'm being thick here but I don't see how you'll get a double gain?

If, for example, you earn £30k in your employed capacity and pay £1K normal pension contribs your taxable pay on your P60 will £29K. Pay an additional £2K to buy added years and your employed taxable earnings will be shown as £27K. When you fill in the SA tax return your SE earnings will be the same but if they take you into HR tax you'll have been able to earn £2K more SE than before.
If your employed taxable earnings remain at £29K but you take the £2K out of your SE earnings then the result is the same - isn't it?