Pension Payments

**minstrel** · 30 March 2009, 15:36

Originally posted by wurzel View Post

I should be asking my accountant this but I can't wait for him to take 3 weeks before he bothers replying to my email.

I've got to make a one off payment to my pension plan so that I can offset it against tax for the current year.
Problem is, got a slight cash flow problem & need to wait for my March invoice to be paid meaning that by the time they cash the cheque we'll
be in the next tax year. Does the fact that the actual payment was made in the next tax year mean I wont be able to offset the payment against this years tax liability ? I sincerely hope not, any ideas?

You can carry back contrbutions to previous tax year, so you should be ok.

http://www.hmrc.gov.uk/PENSIONSCHEME...contoccs.htm#m

**wurzel** · 30 March 2009, 15:58

Cheers, I was worried about that!

**sage@reillymcmordie** · 31 March 2009, 13:11

Pension Payments

If the payment is made before 31 January it can be carried back to the previous fiscal year. There is, in effect, tax planning by using the carry back.

**Fred Bloggs** · 31 March 2009, 20:35

I thought carry back had been ended now?

**wurzel** · 1 April 2009, 08:29

Just spoken to my accountant and he confirmed that there is NO carry back anymore. At least not for a company pension scheme - perhaps it's different for a personal scheme. Fortunately, the fact that I dated the cheque pre-April 5th means that I'm ok.

**sage@reillymcmordie** · 1 April 2009, 10:05

Pension Payments

Originally posted by Fred Bloggs View Post

I thought carry back had been ended now?

- The old "carry forward for 6 years" rules for personal pension payments have ended. Since April 2001, new legislation applies allowing tax payees to carry back. HMRC has produced a helpsheet - IR330

**wurzel** · 1 April 2009, 10:35

I should have been clearer. My company is paying into a company pension scheme. This is not a personal scheme, it would appear that the rules are different and that the carry back has ended. That's what my accountant told me anyway.

**IR35 Avoider** · 2 April 2009, 14:20

I think carryback has been completely abolished.

An important consideration is that for IR35 offsetting purposes, it's when the cash is received/paid out that matters. So pension payments for 2008/2009 have to be made between 6/4/2008 and 5/4/2009, and they only offset invoices for which the cash was received between those dates. So for someone paid monthly after the end of the month, March 2008 to February 2009 invoices. (Assuming money for March invoice is only received after 5 April. I delay posting my invoice to make sure.)

**sage@reillymcmordie** · 6 April 2009, 08:41

Originally posted by IR35 Avoider View Post

I think carryback has been completely abolished.

An important consideration is that for IR35 offsetting purposes, it's when the cash is received/paid out that matters. So pension payments for 2008/2009 have to be made between 6/4/2008 and 5/4/2009, and they only offset invoices for which the cash was received between those dates. So for someone paid monthly after the end of the month, March 2008 to February 2009 invoices. (Assuming money for March invoice is only received after 5 April. I delay posting my invoice to make sure.)

Yes the rules for personal schemes are different from those relating to company plans. Carry back/carry forward rules only ever related to personal pension plans. Any tax deduction can only be received when payment is made for a company plan.

Pension Payments