Tax on a personal pension

connraddy

I'm self employed and am going to be taking out a personal pension, do I pay tax on any contributions that I pay into my pension in my end of year tax return, or are they classes as tax free.

Dazed_and_C0nfused

You don't pay tax on them but equally you cannot claim them as a business expense.

You include the details on the return and the gross contribution increases the amount of your basic rate tax band, which can mean you pay less intermediate rate (Scottish taxpayers only) or higher rate tax.

dunstonh

connraddy said:

I'm self employed and am going to be taking out a personal pension, do I pay tax on any contributions that I pay into my pension in my end of year tax return, or are they classes as tax free.

You get tax relief.  You do not get taxed.  i.e. if you pay in £100, then you get relief of £20 at source meaning your direct debit would be £80.  If you are a higher rate taxpayer then you could claim back a further 20% via your tax return.  (England & Wales.  For Scotland, you adjust to Scottish rates).

Albermarle

https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension