Pension over contribution

[jarjarbinks]

You'll probably spend 30 years in a secure location, with rent, food, heat, and Internet provided by HMG, and you'll have a killer pension when you are free again. Why worry?

Seriously, it just means you'll have a loss for the current year. Your accountant will carry it back to the prior year and reclaim some of the Corporation Tax you paid that year. So you'll have a CT refund.

If you ever go back to LtdCo contracting, be more careful to be precise with your accountant about what you are thinking about doing when you ask advice. That way, he can truly advise you, and you won't have to panic, about nothing, like you're doing here.

Thank you


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[WordIsBond]

I know this probably has been discussed to death but I am really worried and will have to wait till I speak to accountant in Monday :
I have a decent cash reserve , however this year have only made about 40k in total .. I was looking to close down my company at the end of my current contract and invested 40 k in pension after speaking to my accountant .. he did not ask me how much The company turnover was but knew I was looking to wind down , now after reading all the threads I realise I am in the red as I will have registered a company loss after salary etc. I am very worried I have got it all wrong .. please advise

You'll probably spend 30 years in a secure location, with rent, food, heat, and Internet provided by HMG, and you'll have a killer pension when you are free again. Why worry?

Seriously, it just means you'll have a loss for the current year. Your accountant will carry it back to the prior year and reclaim some of the Corporation Tax you paid that year. So you'll have a CT refund.

If you ever go back to LtdCo contracting, be more careful to be precise with your accountant about what you are thinking about doing when you ask advice. That way, he can truly advise you, and you won't have to panic, about nothing, like you're doing here.

[Craig@Clarity]

Hello
My worry is I have broken rules but putting pension contribution of 40k when my turnover is only 42k for this year. I have just finished my contract and looking to wind down company .. I do have reserves form previous years which can cover all other s like salary dividends etc .is that ok?


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You're absolutely fine with this. No need to worry.

[jarjarbinks]

Ohh no that’s not what I wanted to achieve . So this means the only option would be to get another contract ? I really was hoping to wind down .


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[Cirrus]

A loss my corp tax bill would be reduced to zero ? Will this be looked at tax avoidance

Yes

However tax avoidance is perfectly legitimate.

[jarjarbinks]

It's fine to make a loss, as said above. Make sure all your tax obligations are met first and then do whatever is most appropriate for you with the left overs. It sounds like you have healthy reserves and bank balance from which to make payment and you're conflating that with the current year's turnover which is entirely different.

Sorry my understanding is very poor , I have always had high profit and corp tax Bill to pay , but I thought that with A loss my corp tax bill would be reduced to zero ? Will this be looked at tax avoidance


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[ladymuck]

It's fine to make a loss, as said above. Make sure all your tax obligations are met first and then do whatever is most appropriate for you with the left overs. It sounds like you have healthy reserves and bank balance from which to make payment and you're conflating that with the current year's turnover which is entirely different.

[jarjarbinks]

A loss is fine. It's part of business.
If you have cash in the company and are solvent it's no biggie.
Closing the company is fine if it's solvent.
turnover is meaningless.

What's your actual worry here? Can your companmy not afford to pay its bills?

Hello
My worry is I have broken rules but putting pension contribution of 40k when my turnover is only 42k for this year. I have just finished my contract and looking to wind down company .. I do have reserves form previous years which can cover all other s like salary dividends etc .is that ok?


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[Lance]

I know this probably has been discussed to death but I am really worried and will have to wait till I speak to accountant in Monday :
I have a decent cash reserve , however this year have only made about 40k in total .. I was looking to close down my company at the end of my current contract and invested 40 k in pension after speaking to my accountant .. he did not ask me how much The company turnover was but knew I was looking to wind down , now after reading all the threads I realise I am in the red as I will have registered a company loss after salary etc. I am very worried I have got it all wrong .. please advise

A loss is fine. It's part of business.
If you have cash in the company and are solvent it's no biggie.
Closing the company is fine if it's solvent.
turnover is meaningless.

What's your actual worry here? Can your companmy not afford to pay its bills?

[jarjarbinks]

I know this probably has been discussed to death but I am really worried and will have to wait till I speak to accountant in Monday :
I have a decent cash reserve , however this year have only made about 40k in total .. I was looking to close down my company at the end of my current contract and invested 40 k in pension after speaking to my accountant .. he did not ask me how much The company turnover was but knew I was looking to wind down , now after reading all the threads I realise I am in the red as I will have registered a company loss after salary etc. I am very worried I have got it all wrong .. please advise



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