We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Personal pension contributions for 2013/2014
timdf911
Posts: 35 Forumite
I think I know the answer to this one - but here goes anyway..
My daughter is self employed and her accountant is getting ready to file her taxes for 2013 / 2014.
She's earned about £24,000 which less her tax allowance and expenses leaves about £14,000 taxable at 20% plus NI contributions.
I've suggested that going forward she should shelter some of her income in a private pension to reduce her income tax.
Question - is it possible to retrospectively contribute some of her 14K profit from 2013 / 2014 now and thus reduce tax due ?
I suspect not - but would appreciate any comments.
I also think that she should set up a limited company and only draw dividends ie become a contractor rather than self employed ?
My daughter is self employed and her accountant is getting ready to file her taxes for 2013 / 2014.
She's earned about £24,000 which less her tax allowance and expenses leaves about £14,000 taxable at 20% plus NI contributions.
I've suggested that going forward she should shelter some of her income in a private pension to reduce her income tax.
Question - is it possible to retrospectively contribute some of her 14K profit from 2013 / 2014 now and thus reduce tax due ?
I suspect not - but would appreciate any comments.
I also think that she should set up a limited company and only draw dividends ie become a contractor rather than self employed ?
0
Comments
-
No, you can't make pension contributions for the 2013/2014 tax year.
Look up the Corporation Tax rate for small companies and do the sums. Is it worth setting up a limited company?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards