Calculating tax relief for pension contribution

St1mpMeister

Last year I was employed 9 months, but then was let go and received Jobseeker's Benefit for the following 3 months.

I'm filling in my Form 11 and want to include a pension contribution to lower the tax bill for 2017.

Based on my age I can pay a certain percentage of the earnings from 2017 as a lump sum toward a pension for 2017 before Oct 31 this year.

My question is: when calculating the earnings for 2017, do I just take the 9 months full-time employment earnings, or do I also include the 3 months Jobseeker's Benefit earnings?

I'm paying tax on the JB earnings, so I imagine I can include those as well, but want to check here first.

St1mpMeister

Additionally I sold off a fund last year so need to pay tax on the profit (hence the Form 11), so does this profit figure also go toward the 25% earnings figure?

e.g. is it
25% of Full time employment
or
25% of (Full time employment + Jobseeker's Benefit)
or
25% of (Full time employment + Jobseeker's Benefit + Fund profit)

Happy4all

St1mpMeister wrote: »

Additionally I sold off a fund last year so need to pay tax on the profit (hence the Form 11), so does this profit figure also go toward the 25% earnings figure?

e.g. is it
25% of Full time employment
or
25% of (Full time employment + Jobseeker's Benefit)
or
25% of (Full time employment + Jobseeker's Benefit + Fund profit)

Employment income only I would think.

Calahonda52

Is the fund profit not a capital gain, and not income?

JB will not be allowed against a private pension

St1mpMeister

Calahonda52 wrote: »

JB will not be allowed against a private pension

Are you sure? It's taxable income also.

Is this written anywhere ? cheers

El Grifo

St1mpMeister wrote: »

Are you sure? It's taxable income also.

Is this written anywhere ? cheers

Rents are taxable income but you cannot set pension contributions against them.

The income must be from employment (schedule E ) or self employment ( schedule D l / ll trade or profession.

St1mpMeister

El Grifo wrote: »

Rents are taxable income but you cannot set pension contributions against them.

The income must be from employment (schedule E ) or self employment ( schedule D l / ll trade or profession.

ok cool thanks

St1mpMeister

One more question... my funds were classed as "Offshore funds" (Rabodirect)

50% were losing value so no profit there, and the other 50% made a profit that I need to pay 41% tax on.
I had to sell all as Rabodirect were closing and there was no point moving the losing ones to a new provider as I'd need to keep up maintenance fees while still being a loss.

Allowing for the losses, I'm overall slightly in profit but when I pay 41% tax on this profit I will overall have lost cash.

Am I correct in assuming you cannot offset any losses on Offshore funds, and I just have to take the hit?

Calahonda52

St1mpMeister wrote: »

Am I correct in assuming you cannot offset any losses on Offshore funds, and I just have to take the hit?

Why do you think that?
if the gains are taxable then the losses are deductible from your profits and IIRC you can deduct 1,270 from the net gain before the tax cals.

I presume they were disclosed to Revenue prior to May 17

St1mpMeister

Calahonda52 wrote: »

Why do you think that?
if the gains are taxable then the losses are deductible from your profits and IIRC you can deduct 1,270 from the net gain before the tax cals.

I presume they were disclosed to Revenue prior to May 17

I think you're referring to selling shares rather than funds?

St1mpMeister

I've completed the Form 11, except for the following two sections:

"Capital Gains" and "CGT Self Assessment"

Do I need to enter anything in here for the Offshore funds I sold off in 2017? Can I reflect the losses on the Offshore funds here?

thanks