Pension payments from a ltd company

[aceboy]

I am looking to find out what payments I can make.

Back ground info

I take 20k salary from MyCo
I previously had a company pension until Sep 2007.
I have not make any contributions to any pension schemes since Sep 2007

What i would like to achieve

1) I wish to pay 20k per annum into the pension scheme.
2) MyCo is fairly cash rich and I would like to make up for the fact i have not made any contributions for the last few years, therefore I would ,like to make additional payments of 20k for this year & next over and above the 20k stated

Year 1 = 20k (std amt) + 20k (catch up payment)
Year 2 = 20k (std amt) + 20k (catch up payment)
Year 3 = 20k (std amt)
Year 4 = 20k (std amt)
....etc

I read in this thread - But can some one answer me in fairly simple terms?

[Clare@InTouch]

Your company can make employer contributions up to £50,000 per year. As transitional relief, if you have unused amounts brought forward from the prior year then there's the possibility to pay more.

[psychocandy]

I am looking to find out what payments I can make.

Back ground info

I take 20k salary from MyCo
I previously had a company pension until Sep 2007.
I have not make any contributions to any pension schemes since Sep 2007

What i would like to achieve

1) I wish to pay 20k per annum into the pension scheme.
2) MyCo is fairly cash rich and I would like to make up for the fact i have not made any contributions for the last few years, therefore I would ,like to make additional payments of 20k for this year & next over and above the 20k stated

Year 1 = 20k (std amt) + 20k (catch up payment)
Year 2 = 20k (std amt) + 20k (catch up payment)
Year 3 = 20k (std amt)
Year 4 = 20k (std amt)
....etc

I read in this thread - But can some one answer me in fairly simple terms?

Why you paying £20K salary? Its costing you in NI this way....

[aceboy]

Your company can make employer contributions up to £50,000 per year. As transitional relief, if you have unused amounts brought forward from the prior year then there's the possibility to pay more.

Many thanks... So it is personal contributions that are limited by the salary you earn?

Why you paying £20K salary? Its costing you in NI this way....

Thanks for your concerns, but it is not really relevant to this thread

[Clare@InTouch]

Many thanks... So it is personal contributions that are limited by the salary you earn?

Yes. Company contributions are just limited by the annual allowance - go over that and there's no tax relief.

There was some concern about high contributions being deemed as 'not for the purposes of the trade' but I believe that was clarified a while back. There was another thread recently where it was mentioned, and a link back to the PCG here: 'Wholly & exclusively' rule is limited - HMRC | PCG

[RDMZ]

2nd Employee

Your company can make employer contributions up to £50,000 per year. As transitional relief, if you have unused amounts brought forward from the prior year then there's the possibility to pay more.

I take it that the £50,000 per year is on a per emplyoee basis?

So if the company had multiple employees the employer could contribute up to £50,000 per employee per year - is that correct?

[aceboy]

I take it that the £50,000 per year is on a per emplyoee basis?

So if the company had multiple employees the employer could contribute up to £50,000 per employee per year - is that correct?

Do you mean 50k for you and 50k for your comp sec / other director?

Would the revenue generating capacity of the other director be looked at, I.E. your wife was a director and thus did the books, but did not bring in revenue...

[aceboy]

Attn Clare@InTouch...

Wonder if you have any thoughts on the last few replies?

Thanks

[Clare@InTouch]

Attn Clare@InTouch...

Wonder if you have any thoughts on the last few replies?

Thanks

I'd suggest talking to an IFA at this point