Pensions vs ISAs - Tax Write Off?

Swan1305

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!

Victor_the_Gink

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

Victor_the_Gink wrote: »

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.

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

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