Pension help please
Blonde Accountant
Registered Posts: 86 Regular contributor ⭐
Hi, I'm sure loads of you know the answers to this as I probably should-but don't
Can directors of a company pay into a private pension (nothing to do with the company) out of the company bank account and put it as an expense on the p&l a/c?
If so, is there a maximum limit as to how much they can pay in per year-please?
Many thanks for the anticipated help
Nicola:001_smile:
Can directors of a company pay into a private pension (nothing to do with the company) out of the company bank account and put it as an expense on the p&l a/c?
If so, is there a maximum limit as to how much they can pay in per year-please?
Many thanks for the anticipated help
Nicola:001_smile:
0
Comments
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Not my forte but as I understand it:
No. The company can pay into a company pension scheme for the director(s) and claim it as an expense.
Or, the directors can pay into a personal pension with money that's been extracted from the company by the normal route (salary/div).0 -
The company CAN pay into a personal pension scheme of the directors. The main benefit being that there is no limit on the size of contribution as linked to earnings (there is still the £50k annual and £1.8m lifetime limits).0
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Hi,
Many thanks both of you for taking the time to respond0 -
I guess if the company contributed to the director's personal pension a P11D would have to be completed?
Would it be more tax efficient to post the personal pension payments to the director's loan account and raise the necessary dividend vouchers against the personal pension payments?0 -
I guess if the company contributed to the director's personal pension a P11D would have to be completed?
No.Would it be more tax efficient to post the personal pension payments to the director's loan account and raise the necessary dividend vouchers against the personal pension payments?
No.
I'm assuming these are company contributions to a personal pension (paid in gross) and not simply paying the directors own contributions via the company account (paid in net).0
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