Directors Pension - Employers Contribution - Gross or Net?

zagfles

j_netprofit said:

housedesign1 said:

On the topic, I have been given conflicting advice as regards total allowable pension contribution per annum from a limited company to its director.  Several times the ceiling of £60,000 pa has been offered, but some IFAs are stating there is no limit in any one year.  If anyone knows the rules, I would be most grateful.

If you have no carry forward, yes the the maximum you can invest into a pension would be 60k pa. You can carry forward up to 4 previous years allowance. The reason it would equate to £200k is because '21-'23 the allowance was 40k pa.

Previous 3 years not 4 (it's 4 including the current year, you may have meant that). You need to have been a member of a pension scheme in the years you're carrying forwards from. 

zagfles

housedesign1 said:

On the topic, I have been given conflicting advice as regards total allowable pension contribution per annum from a limited company to its director.  Several times the ceiling of £60,000 pa has been offered, but some IFAs are stating there is no limit in any one year.  If anyone knows the rules, I would be most grateful.

Technically true - you're allowed to contribute as much as you like. But if you exceed your available annual allowance then you'll get hit with a tax charge which usually makes it a bad idea. 

j_netprofit

zagfles said:

j_netprofit said:

housedesign1 said:

On the topic, I have been given conflicting advice as regards total allowable pension contribution per annum from a limited company to its director.  Several times the ceiling of £60,000 pa has been offered, but some IFAs are stating there is no limit in any one year.  If anyone knows the rules, I would be most grateful.

If you have no carry forward, yes the the maximum you can invest into a pension would be 60k pa. You can carry forward up to 4 previous years allowance. The reason it would equate to £200k is because '21-'23 the allowance was 40k pa.

Previous 3 years not 4 (it's 4 including the current year, you may have meant that). You need to have been a member of a pension scheme in the years you're carrying forwards from. 

Correct! Sorry, my explanation was askew. Yes 3 pervious years plus current. 4 years allowance in one hit, hence the current max (with out penalties as also mentioned above) of £200k.

I wasn't aware of the latter point, good to know!