Dave Downie explains what the self-employed basis period change means for pension funding...
Some self-employed clients are set to get an unexpected opportunity to boost their pension funding, as self-employed profits align with the tax year from April 2024. The alignment means there will be many clients with a higher than anticipated pensionable income in the 2023/24 tax year - otherwise known as the transitional year before the self-employed basis period change comes into effect in 2025. According to the Office for National Statistics, only 20% of self-employed individuals were contributing to a pension between 2018 and 2020, which means there is a huge opportunity for some...
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