Income tax exemption on money paid into a pension

M

mrfelton

Guest
Hi,

I have worked as a VAT registered sole trader since Jan 09. In this time I have earned about 70K net profit. But, now I'm working on my my tax return, and the government want to take a huge chunk of it... 40% for everything over 36,100!!

I was told that if I had paid some, lets say 20k into a pension, that I would not be liable for tax on that, leaving only 50k for the tax man to worry about - which is clearly better!

But, the tax year is over already, and I didn't pay a thing into a pension. Can I still make a payment into a pension, and use it to offset against the 09-10 tax return, or is it too late now?
 
mrfelton said:
Hi,

I have worked as a VAT registered sole trader since Jan 09. In this time I have earned about 70K net profit. But, now I'm working on my my tax return, and the government want to take a huge chunk of it... 40% for everything over 36,100!!

I was told that if I had paid some, lets say 20k into a pension, that I would not be liable for tax on that, leaving only 50k for the tax man to worry about - which is clearly better!

But, the tax year is over already, and I didn't pay a thing into a pension. Can I still make a payment into a pension, and use it to offset against the 09-10 tax return, or is it too late now?
Click to expand...

check your age against link below for % you can claim
[broken link removed]

i assume 01/01/09 to 31/12/09 is your accounting year- you have until 31/10/10 to continue to pay into a pension and put against 2009 profit
 
papervalue said:
i assume 01/01/09 to 31/12/09 is your accounting year- you have until 31/10/10 to continue to pay into a pension and put against 2009 profit
Click to expand...

Yes, tax year was 01/01/09 to 31/12/09. So, I have until end Oct 2010 to pay upto 15% of my net income for that tax period. That's great! Thanks.
 
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