Guide to using pension contributions to mitigate LC19

[Loan Ranger]

I've knocked up a PDF which covers pension contributions and a few other things.

Download here:

Download LC19 - Pension Contributions v2.pdf | Files.com

Let me know if I've got anything plain wrong, made any errors or if you have any comments.

[Dr Spock]

Thanks for the info.
So if you are planning to use pension contributions to offset the final tax bill would it be worth waiting for the LC19 rather than settling early. Or can you still use pension contributions if you settle ?

[Loan Ranger]

Thanks for the info.
So if you are planning to use pension contributions to offset the final tax bill would it be worth waiting for the LC19 rather than settling early. Or can you still use pension contributions if you settle ?

You can't backdate pension contributions, so this can't be used if you settle.

[starstruck]

I've knocked up a PDF which covers pension contributions and a few other things.

Download here:

Download LC19 - Pension Contributions v2.pdf | Files.com

Let me know if I've got anything plain wrong, made any errors or if you have any comments.

Nice one.

I checked my calcs against your example 1 and got a self assessment tax due figure that was slightly different (but not by much) - I wonder if perhaps you are using 2017/18 rates, I've used 2018/19 rates.

[Loan Ranger]

I checked my calcs against your example 1 and got a self assessment tax due figure that was slightly different (but not by much) - I wonder if perhaps you are using 2017/18 rates, I've used 2018/19 rates.

No, I used 2018/19; personal allowance £11,850.

Did you use a different calculator?

[mrs t]

The problem is having a large available pot of money to pay into a pension scheme for the 3 years...or am I missing something.

[phil@pmtc]

The problem is having a large available pot of money to pay into a pension scheme for the 3 years...or am I missing something.

That’s right, it does involve having a large amount of spare cash available. Clearly that means not possible to most (unfortunately)

[Loan Ranger]

The problem is having a large available pot of money to pay into a pension scheme for the 3 years...or am I missing something.

No, you're not missing something.

You need even more money than it would cost to settle or pay LC19. It's only an option for a very fortunate few.

[starstruck]

No, I used 2018/19; personal allowance £11,850.

Did you use a different calculator?

My bad - I made a mistake - your numbers are spot on for Example 1.

For Example 2 isn't the self assessment amount 60,360?

[Loan Ranger]

For Example 2 isn't the self assessment amount 60,360?

Yes, I think you're right.