Share this content

Can a director pay 100% of earnings into pension?

Can a ltd co director take all his income in the form of a company contribution to a pension?

Didn't find your answer?

A Ltd Co director has asked if he could take all of his earnings from his company in the form of a pension contribution? I.e no salary or dividends?

The business is profitable (i.e. the pension payment won't create a loss) and his full tax-free allowance is being used by his salary from full-time employment

Thanks

Replies (6)

Please login or register to join the discussion.

avatar
By David Ex
08th Dec 2021 19:20

Yes - although obviously you and he might want to consider if it’s a good idea to do so, considered all the circumstances including, for example, tax.

Thanks (0)
avatar
By Calculatorboy
08th Dec 2021 19:48

Of course it's ok subject to the limits

Thanks (0)
Replying to Calculatorboy:
My photo
By Matrix
08th Dec 2021 19:49

Which he already presumably gets from his full time salary.

Thanks (0)
Replying to Matrix:
My photo
By Matrix
08th Dec 2021 19:54

You changed your post. I was replying to this.

Calculatorboy wrote:

He'd be stupid not to take minimum salary in order to get ni credit for state pension...OK its less than 10k pa ..but it'll still pay the average accountants annual alcohol bill

Thanks (0)
Replying to Matrix:
avatar
By Calculatorboy
08th Dec 2021 22:20

Yep I didn't read it all ...I thought he had no other salary ..and I'm talking about pension and alcohol limits..

Thanks (0)
avatar
By JD
09th Dec 2021 10:13

Presumably it is not exceeding the available annual allowance maximums, if lower than the salary level, or if made as employer contribution (and your client wishes to benefit from the deduction for corporation tax purposes).

Thanks (0)
Share this content