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Declaring pension contributions in previous company year.

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    Declaring pension contributions in previous company year.

    Our company year is 01/01/16 to 31/12/16. we have just finished sorting out our annual accounts in order to declare dividends and pay it in this tax year, but in respect to the profits of the 2016 company accounts.

    Are we able to do this with company pension contributions? Ie. now that we have seen how much profit we have for the year, we would like to make some pension contributions that go into the 2016 company accounts, but pay them today to get into the 2016/2017 tax year. is this ok?

    #2
    Originally posted by RoseHills View Post
    Our company year is 01/01/16 to 31/12/16. we have just finished sorting out our annual accounts in order to declare dividends and pay it in this tax year, but in respect to the profits of the 2016 company accounts.

    Are we able to do this with company pension contributions? Ie. now that we have seen how much profit we have for the year, we would like to make some pension contributions that go into the 2016 company accounts, but pay them today to get into the 2016/2017 tax year. is this ok?
    No.
    "Don't part with your illusions; when they are gone you may still exist, but you have ceased to live" Mark Twain

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      #3
      Originally posted by RoseHills View Post
      Our company year is 01/01/16 to 31/12/16. we have just finished sorting out our annual accounts in order to declare dividends and pay it in this tax year, but in respect to the profits of the 2016 company accounts.

      Are we able to do this with company pension contributions? Ie. now that we have seen how much profit we have for the year, we would like to make some pension contributions that go into the 2016 company accounts, but pay them today to get into the 2016/2017 tax year. is this ok?
      Given the urgency and timescale with tax year end, a quick call to your accountant should clarify.
      ______________________
      Don't get mad...get even...

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        #4
        Thanks Cirrus, I guess that's what I was looking for! Have asked accountants but not getting a reply so thought I'd ask here too!

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          #5
          Originally posted by Cirrus View Post
          No.
          Agreed. Pension contributions have to physically be paid in the accounting period for them to be included.

          You should not accrue for pension payments.

          However, if you make a large pension contribution in the current year, which puts you into a loss position, then you can carry the loss back to the prior year and claim the corporation tax relief.

          We're all ears!

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