Any pension cont made reduces your income tax bill.
Payments for NSP are allowed as tax relief, subject to the usual limits.
Sorry I don't understand what you are saying in relation to the question. Should I do a tax return to see what amount the relief is is it? Without actually doing it first? Just seeing the answer? If that's allowed I'll do that so.You do a tax return. All income is included.
You make pension conts.
They are deducted from your gross income, to calculate your taxable income.
NB: there are limits to the tax relief.
Example: earn 50k in job and 10k in self-employment
Pay 5k in normal pension conts in job.
Pay an extra 5k in one-off pension conts, just that year.
Calculations:
gross income = 60k
Taxable income = 50k.
Pension conts = 16.67% of income, that is ok.
If I earn 100k and my wife earns 25k on a three day week, and we are taxed jointly.
If she made pension contributions does she get relief at 20% or 40%?
Sorry for misunderstanding. Thanks for the information.Tax relief on pension conts are personal, AFAIK.
So I suspect 20% in that case.
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