I am getting conflicting information on this so hopefully you guys can help:
What are the contributions restrictions a limited company can make towards a director's personal pension plan and still get tax relief? Some say they can pay up to 100% of the salary and P11d and others say up to £245k providing the whole remuneration package is reasonable. Who is right and can someone give me an HMRC citation should I need to quote it?
Thanks y'all.
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v v quick
Just about to start speaking!
BIM 41035 has popped into my head - if it is wrong have a bit of a scout about around there in BIM.
£245,000 is the answer provided the package is reasonable
But watch out for forestalling
Off to lecture! Regards
Rebecca
how about this?
H&W company both directors both earning over £150k for previous 3 years
company year end 31st July 2010
can the company contribute £40k employer contribution prior to 5th April 2010 and then post 6th April 2010 (but before 31st July 2010) they each make a personal contribution gross of £20K (to obtain 52.5% relief)