Employer pension contribution after company year end

[Neo75]

Hi all,

It's the first time I post here and I hope I that my question will be answered.

I've been working as a contractor since March 2017, which means that the company year end was on 31st March 2018. I've only recently discovered that I can contribute to my pension via my Ltd and deduct 40k from company's net income, which will allow me to pay less corporation tax.

The corporation tax, for the first company year, is due on 1st December 2018.

Can I contribute today, after the company year end, to my pension via my Ltd and have that amount deducted from the net income, hence pay less corporation tax?

Thank you in advance,

Neo

[northernladuk]

Why did your accountant not advise you of this initially and why isn't he the one you've gone to for an answer?

Make sure it isnt your warchest you are thinking of putting in to the pension and leaving nothing to cover 6 months out of work.

[mudskipper]

If you already have a pension, you can can carry forward unused allowance (for 3 years IIRC) , so contribute more this year to get the Corp tax saving next year.

[Sam B Dynamo Accounts]

Hi all,

It's the first time I post here and I hope I that my question will be answered.

I've been working as a contractor since March 2017, which means that the company year end was on 31st March 2018. I've only recently discovered that I can contribute to my pension via my Ltd and deduct 40k from company's net income, which will allow me to pay less corporation tax.

The corporation tax, for the first company year, is due on 1st December 2018.

Can I contribute today, after the company year end, to my pension via my Ltd and have that amount deducted from the net income, hence pay less corporation tax?

Thank you in advance,

Neo

I’m afraid not. The tax relief is given on contributions registered by the pension scheme as actually paid in the company tax year.

You can carry the unused £40k forward as has already been pointed out and get relief in the new tax year but before you do make a large payment be sure you’re not leaving yourself short of funds to cover a contract gap!

Typically I have this chat with my clients no later than 2 months before their year end so maybe speak to your accountant about the available surpluses you have in December / January this year to help plan.

[Maslins]

There's no scope to accrue pension contributions I'm afraid, strictly needs to be on a paid basis. So no, you can't get corporation tax relief last year for funds you put in this year. You can of course get tax relief this year for funds you put in this year.

If you put in a significantly large amount (subject to annual cap for individuals and possibly carry forward) that you make a loss in the current year, you likely could carry back that loss to the year before.