I was hoping that from next year I would be allowed to save some money for my old age. Today I got a letter from my accountant saying that this has maybe now been cancelled.
In an example of a director taking a salary of 5000 with employees getting 3% pension contributions it gave this possible scenario:
"a company can make a contribution of up to £215,000 on behalf of the controlling director but only £150 (3% of £5000) will be allowable as a deduction"
This seems a bit harsh. Does this apply if the company has no employees (does the Company Secretary count)?
The same article suggested that you might be able to give yourself a pension equal to the "salary and pension that would be required to entice an independent person to take sort of duties and responsibilities typically associated with a controlling director".
It seems like the rules are being left deliberately unclear to set up future tax raids. Anyone here know if and how much IT Contracting Companies will be able to contribute to pensions - or is it a case of wait and see?
In an example of a director taking a salary of 5000 with employees getting 3% pension contributions it gave this possible scenario:
"a company can make a contribution of up to £215,000 on behalf of the controlling director but only £150 (3% of £5000) will be allowable as a deduction"
This seems a bit harsh. Does this apply if the company has no employees (does the Company Secretary count)?
The same article suggested that you might be able to give yourself a pension equal to the "salary and pension that would be required to entice an independent person to take sort of duties and responsibilities typically associated with a controlling director".
It seems like the rules are being left deliberately unclear to set up future tax raids. Anyone here know if and how much IT Contracting Companies will be able to contribute to pensions - or is it a case of wait and see?
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