Employer Pension Contributions - Company Tax Year

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smt replied

10 April 2017, 21:46
Many thanks for both the replies. I originally thought exactly that re the new fiscal year but managed to successfully confuse myself over the weekend!

Much appreciated
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IR35 Avoider replied

10 April 2017, 11:24
Your company's tax year is irrelevant in deciding what contributions you can make without breaching pension annual allowance.

You can make another 40K contribution in April because it is a different personal/pension tax-year.

In order to get tax relief on your employer contributions, you treat them as an expense in the company tax-year the contributions are made. If that causes the company to make a loss for the year, that loss can be carried back wholly or in part to offset any profits in the previous year, any remaining loss can be carried forward to reduce profits in future years, until the loss is used up.

Last edited by IR35 Avoider; 10 April 2017, 11:30.
Leave a comment:
Patrick@Intouch replied

10 April 2017, 07:34
The limits for pension contributions are in respect of tax years, so 6 April in the first year to 5 April in the second year.

The company's reporting period is different to the fiscal tax year and so more than £40,000 of contributions could be recorded in one company accounting period while having been made in different fiscal years.

In short, you could have your company make a further contribution before 30 April.
Leave a comment:
smt started a topic Employer Pension Contributions - Company Tax Year

9 April 2017, 16:44
Employer Pension Contributions - Company Tax Year

Hi

I've searched long and hard for a definitive answer to my question below but can't find one so I'd really appreciate it if anyone can help.

For the tax year 6th April 2016 to 5th April 2017, the maximum pension contribution was £40k.

For the 2017/2018 tax year, the £40k limit remains unchanged.

In March 2017, my company made a £40k contribution into my SIPP.

As my company tax year ends on 30th April 2017, can I make one more payment into my SIPP (before 30th April 2017) which will consequently reduce corporation tax for the year ending 30th April 2017 or will my £40k payment be considered to have been the limit for the company tax year (i.e. I have already made my maximum employer contribution for the company's tax year)?

Many thanks in advance for any answers

Kind regards

Simon
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