Tax Question

[Malh001]

Hi all,

I have received a letter from my accountant this morning requesting for all the info for 09 tax year. They have asked if i have made any pension contributions in the year.

My question is, what difference would any contibutions make to any income tax i pay in the tax year, as i haven't been asked this in previous years?

[smartie]

if you're a 40% tax payer then you get a further deduction based on the pension payments made. In any case, its a question on the tax return and so should be answered correctly.

[Malh001]

I was just curious as to the reason why as they haven't asked before, i did intend to answer. It's not worth messing with HMRC!

Cheers.

[Simpo Two]

Malh001 said:

I was just curious as to the reason why as they haven't asked before

Because you're close to the 40% threshold this time? Either that or they forgot.

[Malh001]

Yes, that could be the reason. Unfortunately a long way off 50% though.