Personal Pension Contribution made by company

on whether this was structured as a company contribution or not.

If it was no problem. The payment is made gross and should subject to normal rules be fully deductible for CT with no personal tax issues.

If it wasn't as appears likely from the question then you have an issue. The payment is personal and is debited to her loan account with no corresponding CT deduction and the potential tax implications of O/D DLA etc. The way around this is to vote an equal dividend on the same date. Although the dividend (£55555 gross) is then potentially taxable at higher rates it is more than covered by the BRB extension from the grossed up net contribution (£62500) QED no tax implications.

The issue you have is timing bearing in mind retro divis are frowned on but this is not usually an issue as long as you can demonstrate the payment was meant as a dividend in specie and the paperwork is robust.

jay bothroyd

but would only apply to the extent that her personal income for 2009-10 > £150K that I presume from the post is unlikely unless this is an unusual one woman band company..?

pembo

Thanks for your replies. Now I am REALLY confused!

I have read that payments made by an employer into an employee's pension plan are not taxable/NIC'able.

http://www.hsbc.co.uk/1/2/personal/investments/saving-for-retirement/pensions/faq#occupational_pension_scheme

http://www.bailiegifford.com/pages/UKPersonalInvestors/PersonalPensions/Employercontributions.aspx

https://uk.etrade.com/e/t/uk/media?id=uk_sipp_keyfeatures - here, the notes on page 7 indicate that employer contributions are paid gross and tax relief is claimed by the employer in its accounts.

Can anyone clarify the position please?

Thanks