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company profits into directors pension

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End of company tax year August.  If  I wanted to put the entire profits into a directors pension when do you have to decide.  By end of company tax year or when accountant has calculated profits ?.  Aim to pay no corporation tax if possible.

Comments

  • spider42
    spider42 Posts: 135 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    In order to get tax relief on an employer contribution, the company needs to physically pay it over to the pension provider before the year-end. Making an accrual for it in the accounts isn't sufficient - it needs to be be paid to get the relief.

    Also bear in mind your annual allowance capacity and tapering. An excessively large contribution could exceed your annual allowance, or result in the annual allowance being tapered down from £60,000 (now increased from £40,000 in yesterday's budget from 23/24 tax year onwards).
  • David99M
    David99M Posts: 5 Forumite
    Second Anniversary First Post
    If you are are a Ltd Company director then you should be making pension contributions as a company expense and this will be taken out before profit is calculated. I believe you can even make a loss for the year and claim back from previous years corporation tax if needed. Also remember you can use the 3 previous years pension allowance if you have more than £40k of profit
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