Discuss private pensions and filling out your tax return? in the Business Related area at ElectriciansForums.net

HappyHippyDad

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I have just started paying into a private pension. I pay in £500 p/month, the government tops it up by £125, which relates to the tax.

Every year I fill out my tax return. I am self employed and am a sole trader, so the tax return is fairly straight forward. However, I always put 'zero' where it asks for amount paid into a pension, as I have never paid into a private pension before.

My question is, do I now enter the amount I have paid into the private pension? My concern is that i will then not pay tax on this amount, in other words I benefit twice which is wrong. However, surely the tax office knows it is paying out t he £125?

What do you guys do who fill out there own returns and pay into a private pension?

Bit confused, thanks in advance.
 
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telectrix

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i'll program the question into my MFT. should come out with a figure to3 dec. places. 🤣, seriously thogh, you neeed advice fro a finacial/pension advisor wearing a suit, not a grotty spark in dewalt work trousers.
 

snowhead

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There's absolutely no way you'll get double the tax relief.

It's not a trick question, it's asking how much have you paid, not how much have you paid less any tax relief.
The answer is the total for the relevant year, at £500 p.m, that has left your bank account.
 

DPG

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I'd agree with Snowhead. You enter the figure that you pay, and they know how to deal with it. It's in the private pension field so it's not like they will mix it up with anything else.
 

SJD

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If you read (carefully) the notes relating to that section of the return, it will tell you when and when not to include pension payments.
 

HappyHippyDad

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As an add on.
I posted this same thread on a financial forum. The 2 replies that I have had, have both said that I enter the amount including the part the government has paid, i.e £625. So I am still unsure!?😕
 
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You don't pay tax at the point of putting money into your pension pot. It accumulates as non-tax paid savings, in the scheme you use.
You pay tax when you come to withdraw it - in fact the tax is deducted by the scheme manager, and you get the balance. The final amount of tax you pay will depend on your allowances in the year of withdrawal.
I guess the exact details depend on the scheme you use. Is there any advice from them?
 
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