How much can the Self-Employed put into their Pensions?

atush

It will alter his income tax, as that money will get the tax back, even those who earn NOTHING get TR on 3600/2880.

In any case, we havent acertained if they are a LC or not. And how much salary/dividends they pay themselves annually.

Dazed_and_confused

We'll have to agree to disagree.

A basic rate payer will not see any reduction in the personal income tax they are required to pay. Including the pension contribution on their self assessment return simply makes no difference to the tax payable.

The pension fund will be increased with basic rate tax relief but that does not alter in any way the op's personal income tax liability.

BoGoF

Dazed and confused is correct. A basic rate taxpayer will see no difference to the tax they personally pay. Any tax relief is simply paid by the Government directly into the pension scheme.

Twointhebush

Sorry about my absence, I was expecting to be notified of any replies. Thanks though, my question is answered. Profit it is then. I didn't have a good feeling about the 'financial adviser' and didn't invite him back anyway.

AlanP_2

Twointhebush wrote: »

Sorry about my absence, I was expecting to be notified of any replies. Thanks though, my question is answered. Profit it is then. I didn't have a good feeling about the 'financial adviser' and didn't invite him back anyway.

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Easily missed.