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Pension for 2nd Director / Employee Question

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    #11
    Further to this point, I am just about to make my pension contributions for this year.

    As I have other personal income I am going to put 8k in personally to get 2k in tax relief taking it to 10k

    Then I was going to put in 10k from my business (which I understand I have to set up a bank to bank transfer and let them know so they don't add in the tax relief) and I save some CT.

    Question...

    What's to stop me putting 10k down as pension payments in my accounts, but transferring the money directly to myself and then sending it to the pension fund where by default they'll add in 20% tax relief (thus saving my self CT and also sneakily getting some extra tax relief)

    How would anyone know?
    What happens in General, stays in General.
    You know what they say about assumptions!

    Comment


      #12
      Originally posted by MarillionFan View Post
      Further to this point, I am just about to make my pension contributions for this year.

      As I have other personal income I am going to put 8k in personally to get 2k in tax relief taking it to 10k

      Then I was going to put in 10k from my business (which I understand I have to set up a bank to bank transfer and let them know so they don't add in the tax relief) and I save some CT.

      Question...

      What's to stop me putting 10k down as pension payments in my accounts, but transferring the money directly to myself and then sending it to the pension fund where by default they'll add in 20% tax relief (thus saving my self CT and also sneakily getting some extra tax relief)

      How would anyone know?
      When HMRC decide to check your books for some other tax reason and you get caught perhaps?

      People who commit fraud tend to do at least one stupid thing which means they get caught.
      "You’re just a bad memory who doesn’t know when to go away" JR

      Comment


        #13
        Originally posted by MarillionFan View Post
        What have others set up for their spouses?
        My company pays into my pension every month and a smaller amount into my wife's pension every month.

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