company pension contributions

company pension contributions

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What would the revenue deem reasonable and allowable for corporation tax purposes by way of pension contributions made into directors personal pension funds from a small company with 4 directors who do not draw any remuneration from the company? Before any such contributions are taken into account the annual profit is £36k

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By User deleted
04th Aug 2011 21:49

Not enough info

Turnover could be £100m, expenses £99.966m - contributions of £50k per director could be fine. But turnover £34k, expenses £nil - £50k per director might be pushing it. Having said that, HMRC guidance indicates that they will tend not to question contributions of small OMB's since, by definition, the contributions tend to be based on commercial decisions.

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