New pension for sole trader

J

JackB

Guest
Hi.. I am about to begin a pension. I am 30, sole trader and will be paying it on a yearly basis at the end of my tax year.

What is the best way to contribute to this and who is the best to go with? I can afford approx 400pm. If my tax return as a sole trader is X at the end of the year, what % of what I owe the revenue can I put into a pension scheme?

Thanks guys!!
JB
 
In the same position myself so I'm interested in the reply. I'm leaning towards Quinn Life. They have a choice of 6 or 7 various funds to invest in. They also seem to have the least and most transparent charges for managing the fund. I'm not sure about the allowed proportions etc...
 
The maximum contribution rate (as a percentage of total pay) on which you can receive tax relief is based on your age:

Under 30 ---- 15%
30-39 ------- 20%
40-49 ------- 25%
50 or over --- 30%

For tax relief purposes these contributions are limited to earnings up to a maximum of €254,000 in any tax year.
 
The max conts are as set-out above BUT for 55 and over it is 35% (not 30%) and for 60 and over it is 40% (not 30%).
 
The links that you gave are out of date.

The figures that I gave came from Budget 2006 and are correct.
 
Try to get it up and operational by 30th Oct and you can offset pension contributions against last years income for tax purposes.

These are max figures for tax relief purposes. You can contribute more if you wish. Probably better off putting excess elsewhere though.
 
Thanks asdfg. My accountant tells me that as a sole trader, after all expenses, I will have a tax return of approx 3,000.
Does this mean I can only offset the 20% = 600?
Not much for a yearly pension if, as you say, I put "excess elsewhere".. Any suggestions?
Thanks again
Jack
 
If your tax payable is €3,000 then presumably your taxable income is approx €15,000 so - depending on you age - you can contribute the approriate percentage (as per table set out earlier) of this to your pension.
 
Where you are making a return for the 2005 tax year the old contribution rates apply, i.e maximum of 30%.
 
CapitalCCC said:
If your tax payable is €3,000 then presumably your taxable income is approx €15,000 so - depending on you age - you can contribute the appropriate percentage (as per table set out earlier) of this to your pension.
Click to expand...

I also take it from you calculation of €3k leading to a contribution max of €600 that you are in the age 30 to 39 bracket so whatever way you look at it, you can put in a max contribution of 20% of your taxable income.
 
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