Self employment after early retirement - advice please...

keithcparry

I am a retired teacher - I will be 61 this coming August (2014).
I have a final salary pension which is tied to CPI through the Teachers' Pension Scheme.
I now have several different types of paid activity which I undertake - most of which are as a contracted employee - so they are subject tp normal PAYE arrangements. In addition I am now subscribed to a pension scheme in each case. In addition to these I also do some freelance work for which I am paid gross - without deduction of tax.
What I would like to do is put as much as I am allowed into a pension pot in order to build up some additional pension entitlement - and with this in mind I have some specific questions - if anyone can offer any advice I would be grateful:
1. In 2013-14 I received around £4k in direct untaxed payments for work I did. Am I still able to use some or all of this to pay into a pension pot? If not then can I do this for 2014-15?
2. My wife is a childminder who earns a very low amount of profit and so pays only a small amount of tax - she does not have a pension as she has been self employed for the last 20 years. Can some or all of her earnings be put into a pension pot?
3. Is there a cheap and simple way to set up pension pots for each of us?
Many thanks

kidmugsy

keithcparry wrote: »

… I am now subscribed to a pension scheme in each case. In addition to these I also do some freelance work for which I am paid gross - without deduction of tax.
What I would like to do is put as much as I am allowed into a pension pot in order to build up some additional pension entitlement...
1. In 2013-14 I received around £4k in direct untaxed payments for work I did. Am I still able to use some or all of this to pay into a pension pot?

No; once the tax year has finished, that's that.

keithcparry wrote: »

If not then can I do this for 2014-15?

Yes, but you can do even better. Add up all your earnings (earnings, note, not pension income) you will make for the year and then subtract the total amount you will have contributed to pensions. The difference is the gross amount you can contribute for '14-'15 (or you can contribute £3600 gross if that is bigger). You write your cheque for the net sum, i.e. 0.8 x gross, ad the pension provider claims the other 20% from the taxman and adds it to your pot.

keithcparry wrote: »

. My wife is a childminder who earns a very low amount of profit and so pays only a small amount of tax - she does not have a pension as she has been self employed for the last 20 years. Can some or all of her earnings be put into a pension pot?

See above: all her earnings or £3600 if that's more.

By the by, it may be well worth her while to pay the self-employed National Insurance Contribution to build up her entitlement to State Retirement Pension. Why not get the official prediction of what she's entitled to by way of pension and how many years' of NICs she's recorded as being credited with?

keithcparry wrote: »

3. Is there a cheap and simple way to set up pension pots for each of us?

We've been happy with SIPPs at Hargreaves Lansdown. Others like personal pensions through Cavendish Online. You can look at cost comparisons at such blog sites as "monevator" and "the lang cat".

P.S. Is that your real name you've used? I'd adopt a pseudonym if I were you.