Pensions and tax

[Flippyflopp]

Hi I’m looking for some advice. I’m self employed, my work is a mix of paye and invoiced. I have been doing my tax return for 2017/18 and have earnt approx 17k. 😬 annoyingly this is just over the limit for getting free prescriptions and school meals etc. My question is can I pay into a private pension in order to reduce my income for that year or is it too late? I have avoided paying into a pension until now😩

Pension contributions would only count in the year they’re made so too late to do anything about 2017/18 or 2018/19 now.

I thought that you could pay up to four years back pay in to a pension scheme? Maybe best to check with an accountant?

I thought that you could pay up to four years back pay in to a pension scheme? Maybe best to check with an accountant?

You can use up to 4 years of unused pension limits/allowances, but the tax relief is given in the year you actually pay it, not the years over which the allowance was available.

As user says, the four years carry-forward is for annual allowance purposes, and can reduce any tax liability on pension contributions if you contribute more than the annual allowance in a tax year. It won’t change your income for tax years that have already passed.

Yes - that's makes sense. Sorry Flippyflopp.

I have been doing my tax return for 2017/18

Is that not a year late?

Self employed pension contributions are classed as income so you would still be above the limit your trying to get under