Have I missed the boat?

pip895

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?

Malthusian

Yes, unfortunately. Earned income can't be carried forward.

pip895

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

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

But you haven't earn't anything until you get paid?

BoGoF

Tight_Fart wrote: »

But you haven't earn't anything until you get paid?

You have on the accruals basis that applies to the self-employed

mgdavid

Tight_Fart wrote: »

But you haven't earn't anything until you get paid?

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).

pip895

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?