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Retrospective pension payments ?

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    #11
    Do you have the money still sitting in your company and do you have a pension scheme already set up?

    Quote from a source on the web..

    There is also an 'annual allowance' which limits the annual tax relief which an individual may receive on pension contributions and other increases in a person's pension rights. More can be contributed but the tax exemption on the excess will be recovered. The annual allowance for 2010-11 was £255,000 but this has been reduced to £50,000 for 2011-12. Individuals who have been a member of a registered pension scheme and who have unused annual allowance from the previous three tax years can carry that allowance forward, meaning they may not have to pay the annual allowance charge.
    Can you not use the carry forward and just dump a very large amount in this year to keep it nice and clean?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #12
      Does it mater that much? It's not like an allowance that is lost forever... just pay in double this year and get double the discount off your corp tax this year instead..?
      It's about time I changed this sig...

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        #13
        Originally posted by MrRobin View Post
        Does it mater that much? It's not like an allowance that is lost forever... just pay in double this year and get double the discount off your corp tax this year instead..?
        I've been advised that though that limit NLUK mentions is around, you also have to be careful paying in more than your salary - which for contractor Ltds might be quite low.

        If he only puts in a couple of grand a year though, I agree with you.
        Originally posted by MaryPoppins
        I'd still not breastfeed a nazi
        Originally posted by vetran
        Urine is quite nourishing

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          #14
          You could just pay that much more next year. An accountant told me a few years back that in considering what are reasonable amounts to a pension HMRC would take into account previous years without payments.
          bloggoth

          If everything isn't black and white, I say, 'Why the hell not?'
          John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

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            #15
            I did have a link but can't find it now, however I did find an old reference that even back in 2001 you could do catch up payments, think the rules are more relaxed now.
            bloggoth

            If everything isn't black and white, I say, 'Why the hell not?'
            John Wayne (My guru, not to be confused with my beloved prophet Jeremy Clarkson)

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              #16
              Originally posted by d000hg View Post
              You can do this. Possibly for more than one year but ask an accountant or someone.
              Yes it's all sorted now Thanks for the replies, I've now put a few things into an electronic calendar with associated alarms. Whatever is going on in my other life now atleast I'll be informed about important financial dates
              When a man says his word is as good as his bond take his bond.

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                #17
                Originally posted by MrRobin View Post
                Does it mater that much? It's not like an allowance that is lost forever... just pay in double this year and get double the discount off your corp tax this year instead..?
                Well normally maybe it wouldn't matter too much but I finished a contract and I'm currently considering whether to work again or just put my feet up If I don't work again or for sometime the pension contribution wouldn't be as tax efficient as it would last financial year because I had a very good year.
                When a man says his word is as good as his bond take his bond.

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