Pension Contribution Limits

Posted by Anonymous PM | on Mon, 08/03/2010 - 21:08 937 2 comments | report

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.

Comments

v v quick

RebeccaBenneyworth | Tue, 09/03/2010 - 09:29 | Permalink

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?

nick farrow | Wed, 10/03/2010 - 15:00 | Permalink

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)