Extend yr end for pension contribution

[ZARDOZ]

If I extend my year end (from may15) can I make a pension contribution and offset it against 14-15 Corp Tax. Read elsewhere that this is allowable, provisionally ran past accountant. This year taking time out so will not be much profit.

Anyone done this?

Cheers

[MarillionFan]

If I extend my year end (from may15) can I make a pension contribution and offset it against 14-15 Corp Tax. Read elsewhere that this is allowable, provisionally ran past accountant. This year taking time out so will not be much profit.

Anyone done this?

Cheers

Don't you make pension contributions in the period April to April?

[expat]

Don't you make pension contributions in the period April to April?

At a guess, personal contributions in tax year, company contributions in FY.

[Jessica@WhiteFieldTax]

If I extend my year end (from may15) can I make a pension contribution and offset it against 14-15 Corp Tax. Read elsewhere that this is allowable, provisionally ran past accountant. This year taking time out so will not be much profit.

Anyone done this?

Cheers

All other things being equal, yes for corporation tax.

Eg if your FY was 12 months to 31/5 and you extended it to 31/7 then 14 months profits are apportioned to two CT periods in ratio 12/14 and 2/14 and you will offset to CT in that 14 month period which, I think, is what you are trying to do.

Check your pension input period with your pension provider, and consider headroom against both annual and lifetime limits.

[ZARDOZ]

All other things being equal, yes for corporation tax.

Eg if your FY was 12 months to 31/5 and you extended it to 31/7 then 14 months profits are apportioned to two CT periods in ratio 12/14 and 2/14 and you will offset to CT in that 14 month period which, I think, is what you are trying to do.

Check your pension input period with your pension provider, and consider headroom against both annual and lifetime limits.

Thanks, I dont have a company pension set up (yet) but want to maximise tax efficiency in light of all the changes coming for contractors a pension makes more sense.

[ZARDOZ]

Don't you make pension contributions in the period April to April?

Pensions novice here but just trying to work out tax implications for myco

[Jessica@WhiteFieldTax]

Thanks, I dont have a company pension set up (yet) but want to maximise tax efficiency in light of all the changes coming for contractors a pension makes more sense.

You should be fine then to make a payment before the end of your extended FY.

As I say check lifetime cap, and presumably annual cap will be £40k if you have no other scheme in place.

With the de-restriction of pensions over the last 18 months or so, they are, IMV, becoming a more attractive vehicle again now the pitfall of low annuity rates isn't overhanging.

[ZARDOZ]

Thanks for taking the time to respond