Pension contribution by one man Ltd company

[northernladuk]

Do you mean this one?

Ooops....

If any part of the package is deemed to be “excessive”, then the company cannot get tax relief on the excess.

[ttyyaa]

So if I am the one who earns all the money and the company only has one shareholder and all the money goes to my pension (minus minimum salary),

Presumably, I can then argue the contribution is "whole and exclusively incurred for the benefit of the company's trade".

CT is reduced......?

[malvolio]

Pension contributions and allowable motor & travel both reduce a deemed payment, yes.

There was discussion a while back about large pension payments not being allowable for CT purposes as they may not be "wholly and exclusively" for the business, but that was debunked by PCG I believe (although I can't find the exact article now, so I'm not sure if they've taken it down......)

Do you mean this one?

[Clare@InTouch]

Pension contributions and allowable motor & travel both reduce a deemed payment, yes.

There was discussion a while back about large pension payments not being allowable for CT purposes as they may not be "wholly and exclusively" for the business, but that was debunked by PCG I believe (although I can't find the exact article now, so I'm not sure if they've taken it down......)

[ttyyaa]

I am an IT contractor operating through a one man Ltd company. I am about to go into an IR35 caught contract for a few months and am planing the tax implication.

In order to minimise the overall tax hit of this particular contract, could I pay a minimal salary (~ £7k) just to avoid NIC and income tax and pay the rest of the balance all into my personal SIPP?

Will this relative large pension contribution be allowable for corporation tax? I am aware there is a £50k cap and this contract is below that value.

Thanks