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Self employed pension and tax

3 replies

TennisTantrum · 02/05/2024 08:31

I have recently become self employed. Currently I take home about £2500 a month/30k a year. I have no other income.

I want to put aside for a pension, probably aprx £400 a month. If I do this does this mean I will only be taxed on the £2100?

OP posts:
wonderingwhatsnext · 02/05/2024 08:34

No. When you pay in to a private pension the government top it up by the equivalent in tax. Then when you do your self assessment you are taxed on it all because the extra money has already been paid in to your pension.

TennisTantrum · 02/05/2024 15:45

Ah I see. Thank you for clarifying for me!

OP posts:
Tooski · 11/05/2024 21:26

The Sum total is the same though… if you want £400 in your pension, you only pay in £320, then the provider claims the £80 for you.

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