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Net relevant earnings for pension contributions

Net relevant earnings for pension contributions

If a taxpayer has a balance of £5k self-employed losses carried forward from year 2016/17 and makes a profit of £30k in year 2017/18 what is the value of his net relevant earnings for the purpose of calculating his maximum pension contributions in year 2017/18  (self-employed earnings are his only source of pensionable income). 

Can he make £30k (£24k net) contributions in year 2017/18 or is his limit capped at £25k (£20k net) contributions ?  

 

 

 

 

 

 

 

 

 

 

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14th Mar 2018 10:58

Id say 30K. There is no requirement to deduct for self employment losses.

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14th Mar 2018 12:20

Thank you both for taking the time to reply. Much appreciated.

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17th Apr 2018 18:02

Helpful thread ..
But if it's 'chargeable to tax', shouldn't we be considering other adjustments to net profit, eg, capital allowances?

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