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Guide to using pension contributions to mitigate LC19

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    Guide to using pension contributions to mitigate LC19

    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.

    #2
    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 ?

    Comment


      #3
      Originally posted by Dr Spock View Post
      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.

      Comment


        #4
        Originally posted by Loan Ranger View Post
        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.

        Comment


          #5
          Originally posted by starstruck View Post
          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?

          Comment


            #6
            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.

            Comment


              #7
              Originally posted by mrs t View Post
              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)

              Comment


                #8
                Originally posted by mrs t View Post
                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.

                Comment


                  #9
                  Originally posted by Loan Ranger View Post
                  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?
                  Last edited by starstruck; 28 March 2018, 18:21.

                  Comment


                    #10
                    Originally posted by starstruck View Post
                    For Example 2 isn't the self assessment amount 60,360?
                    Yes, I think you're right.

                    Comment

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