I wish I knew about this forum a few years ago - I am totally new to the forum so apologies if I have got a few things wrong here...
I have been a little passive and assumed my accountants were on the ball with their advice. I have asked multiple questions and am only now realising they may not have given me the best advice. I clearly should have acted sooner... I would really welcome your advice as I think I need to (or would like to) act pretty quickly.
Quick summary. I have had a limited company since April 2014. This year I have not picked up a contract since July due to a number of factors (though I have been actively looking and had quite a few roles fall through). My accountant has told me I should not be collecting a salary from my limited company as I have not been engaged on a contract. And I certainly should not take a salary in April 2017. I can't find anywhere that supports this position - or am I missing something?
My company has made an employer pension contribution (£40K) to my SIPP this year. This has taken me to a small loss (taking in to account salary and dividends this year).
I have plenty of retained profit to cover everything I am talking about here.
In addition I wish to make use of the employer pension contribution (to my SIPP which has been in place long before my limited company was set up) carry forward from previous years - when I was made a profit which will cover the contribution. My account has told me I cannot do this as it will create a loss and HMRC will not allow it: 'Pension contribution cannot create a loss for your company. As you are contributing to the personal pension fund through your company and your company does not have income therefore it will create a loss. Therefore it is very likely that HMRC may disallow the pension contribution expenses and charge corporation tax.'
I have no issue paying the appropriate tax (haven't I already paid corporation tax on the retained profit?). However is it also possible to carry back a trading loss to the year when the pension contribution is carried forward from?
I have asked these questions of my accountant and have radio silence (interspersed with unhelpful/ rude emails). I am also considering the future of my limited company. I would like to focus on a self employed activity (totally unrelated to the contracting work) for six months or so this year so I need to look at closing or making my limited company dormant (not with Companies House but with HMRC). Needless to say whatever I do I want to make sure all the liabilities etc. are covered - AND I will be changing accountants (or doing it myself!).
Thank you in advance for your advice!!!!
I have been a little passive and assumed my accountants were on the ball with their advice. I have asked multiple questions and am only now realising they may not have given me the best advice. I clearly should have acted sooner... I would really welcome your advice as I think I need to (or would like to) act pretty quickly.
Quick summary. I have had a limited company since April 2014. This year I have not picked up a contract since July due to a number of factors (though I have been actively looking and had quite a few roles fall through). My accountant has told me I should not be collecting a salary from my limited company as I have not been engaged on a contract. And I certainly should not take a salary in April 2017. I can't find anywhere that supports this position - or am I missing something?
My company has made an employer pension contribution (£40K) to my SIPP this year. This has taken me to a small loss (taking in to account salary and dividends this year).
I have plenty of retained profit to cover everything I am talking about here.
In addition I wish to make use of the employer pension contribution (to my SIPP which has been in place long before my limited company was set up) carry forward from previous years - when I was made a profit which will cover the contribution. My account has told me I cannot do this as it will create a loss and HMRC will not allow it: 'Pension contribution cannot create a loss for your company. As you are contributing to the personal pension fund through your company and your company does not have income therefore it will create a loss. Therefore it is very likely that HMRC may disallow the pension contribution expenses and charge corporation tax.'
I have no issue paying the appropriate tax (haven't I already paid corporation tax on the retained profit?). However is it also possible to carry back a trading loss to the year when the pension contribution is carried forward from?
I have asked these questions of my accountant and have radio silence (interspersed with unhelpful/ rude emails). I am also considering the future of my limited company. I would like to focus on a self employed activity (totally unrelated to the contracting work) for six months or so this year so I need to look at closing or making my limited company dormant (not with Companies House but with HMRC). Needless to say whatever I do I want to make sure all the liabilities etc. are covered - AND I will be changing accountants (or doing it myself!).
Thank you in advance for your advice!!!!
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