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Pension payments Ltd company


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runcyclejc said:My pension provider doesn’t accept payments directly from a business account, I’m a bit concerned about how this affects my situation with HMRC. If I continue transferring funds from the business account to my personal account and then to the pension, could that raise any flags? I want to make sure I’m compliant and not inadvertently classifying those payments as dividends or salary.0
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Dazed_and_C0nfused said:runcyclejc said:My pension provider doesn’t accept payments directly from a business account, I’m a bit concerned about how this affects my situation with HMRC. If I continue transferring funds from the business account to my personal account and then to the pension, could that raise any flags? I want to make sure I’m compliant and not inadvertently classifying those payments as dividends or salary.0
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runcyclejc said:If I continue transferring funds from the business account to my personal account and then to the pension, could that raise any flags?1
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runcyclejc said:Dazed_and_C0nfused said:runcyclejc said:My pension provider doesn’t accept payments directly from a business account, I’m a bit concerned about how this affects my situation with HMRC. If I continue transferring funds from the business account to my personal account and then to the pension, could that raise any flags? I want to make sure I’m compliant and not inadvertently classifying those payments as dividends or salary.
Basic rate tax relief is only ever due on employee contributions, not employer ones so it is clear what the pension company thinks is happening.
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The short answer is yes. Pension contributions are among the few tax breaks available to limited companies. Putting money into your pension isn't only about saving for your retirement but is also a tax-efficient way of using profits from your business.
As a company director you can contribute to your director's pension both as employer contributions and as an individual. And it's possible to claim pension tax relief on both.
However, contributing through our limited company is usually more tax-efficient than contributing your funds as an individual, as you'll reduce your company's taxable profits and your
Taken from Unbiased web page
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My pension provider doesn’t accept payments directly from a business accountThat is very unusual with individual plans. Is it a group scheme or a robo? (some robos don't support employer contributions).If I continue transferring funds from the business account to my personal account and then to the pension, could that raise any flags?Technically, you are not required to have a business bank account for the limited company and can run it through a personal bank account, if the bank allows. However, its messy and often makes accountant costs larger. Plus, it wouldn't solve your issue as its your provider that wont accept employer contributions. Not the bank account.Correct the tax relief is being added to the net contributionAnd that is your problem. You are trying to make personal contributions from a limited company account. You need to be making employer contributions. Not personal.
Personal contributions will not be treated as a business expense and will be treated as a draw from the company and taxed accordingly.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
runcyclejc said:
The short answer is yes. Pension contributions are among the few tax breaks available to limited companies. Putting money into your pension isn't only about saving for your retirement but is also a tax-efficient way of using profits from your business.
As a company director you can contribute to your director's pension both as employer contributions and as an individual. And it's possible to claim pension tax relief on both.
However, contributing through our limited company is usually more tax-efficient than contributing your funds as an individual, as you'll reduce your company's taxable profits and your
Taken from Unbiased web page
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molerat said:runcyclejc said:
The short answer is yes. Pension contributions are among the few tax breaks available to limited companies. Putting money into your pension isn't only about saving for your retirement but is also a tax-efficient way of using profits from your business.
As a company director you can contribute to your director's pension both as employer contributions and as an individual. And it's possible to claim pension tax relief on both.
However, contributing through our limited company is usually more tax-efficient than contributing your funds as an individual, as you'll reduce your company's taxable profits and your
Taken from Unbiased web page
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runcyclejc said:molerat said:runcyclejc said:
The short answer is yes. Pension contributions are among the few tax breaks available to limited companies. Putting money into your pension isn't only about saving for your retirement but is also a tax-efficient way of using profits from your business.
As a company director you can contribute to your director's pension both as employer contributions and as an individual. And it's possible to claim pension tax relief on both.
However, contributing through our limited company is usually more tax-efficient than contributing your funds as an individual, as you'll reduce your company's taxable profits and your
Taken from Unbiased web page
What's your current pension scheme? Anything to stop you opening a pension with a provider which will accept employer contributions?dunstonh said:If I continue transferring funds from the business account to my personal account and then to the pension, could that raise any flags?Technically, you are not required to have a business bank account for the limited company and can run it through a personal bank account, if the bank allows. However, it's messy and often makes accountant costs larger. Plus, it wouldn't solve your issue as it's your provider that wont accept employer contributions. Not the bank account.
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!2 -
Do you mean that you wish to make personal contributions from the salary your company pays you? These will be made from your personal account.
Or do you mean that your company will make contributions to your pension as your employer? These will be made from the company's account.
https://getpenfold.com/pension-guides/what-is-a-director-pension
If you require advice, you could try
https://adviserbook.co.uk/
Tick "confirmed independent" and other options required when the menu comes up.1
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