SSAS - Backdated Contributions

biggerdave99

I set up my own one-man consultancy business in Nov 2008 and I'm pleased to say it's done pretty well - I'm now thinking of a SSAS as a pension vehicle, mainly due to the self investment flexibility.

I closed my first accounts for Corporation Tax on 31st October 2009 with a surplus and wondered whether there's any option to shield these profits from CT by making a subsequent payment into the pending SSAS i.e. can I backdate contributions?

Any pointers would be welcome together with recommendations of a good quality, cost effective SSAS provider (NB: I don't need investment advice from the SSAS provider as I'll be using my own investment skills).

Thanks in advance

Dave

petejones76

Dave

Great news that your consultancy has been so successful if its first year. The answer is that you cannot backdate contributions from the company to a pension scheme unfortunately. Contributions need to be made prior to the end of the compnay year to sheild profits from Corporation Tax.

Nevertheless, it could be a wise move to set up a SSAS for your company as it enables you to lend money back to the company if required. Obviously future years contributions can be offset against CT. If you have commercial property the company trades from this can be purhcased by the SSAS and leased to the company; highly tax efficient. Let me know if you need more info regarding SSASs.

Pete