Employer contribution to a SIPP before a profit has been made.

hoofy

I have my own Ltd Co and would like to make a full £40k SIPP contribution to myself (only employee/director) I would like to make the contribution now despite the company not having yet made a 40k profit this year, but I am 99.999% confident that it will do in the next few months as my stock levels are high and my overheads are minimal and I am also at my busiest time of year. Any further lockdowns shouldn't be a problem as I get busier in lockdowns.

Can I do this now, or do I have to wait until the stock is sold and showing as profit on my accountancy software?

dunstonh

I would like to make the contribution now despite the company not having yet made a 40k profit this year,

When you make an employer contribution, the only issue is your profit as the pension contribution is a business expense.   The annual allowance for directors allows you to use current year plus 3 previous years unused allowances (subject to qualification).  

Can I do this now, or do I have to wait until the stock is sold and showing as profit on my accountancy software?

it doesn't matter when in the tax year or business year you do it as long as you know you will have the profit in the business in the trading year to allow for corporation tax reduction.   Even if you don't you may be able to carry losses over into another year. 

Typically, directors tend to pay towards the end of the business year or in periodic chunks throughought.  i.e.. wait until they no longer need the money