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Can Ltd company pay directors personal pension?

Sole director and wants to pay his personal pension contributions via the Ltd company??

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My client is a sole director and wants to pay his personal pension contributions of £300 per month via the limited company.  Firstly is this allowable as it is not the companies pension scheme and secondly is this classed as additional income/salary or benefit in kind?  He is taken minimum salary and dividends.  I initially thought no he can't do that but now not so sure.....

Any guidence appreciated.

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Psycho
By Wilson Philips
04th Nov 2019 15:33

There are a couple of options here. Provided that the scheme allows employer contributions (most do, and it doesn't have to be the "employer's scheme" for this purpose) the company can make employer contributions and obtain CT relief.

Alternatively, if he wants to continue to treat them as personal contributions, the simplest treatment is to debit the payments by the company to his director's loan account. That may of course have consequences of its own.

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By Matrix
04th Nov 2019 16:27

If the company makes the contribution as an employer contribution then ensure the pension provider knows it is an employer contribution so no basic rate tax is reclaimed.

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By Caronlouise
04th Nov 2019 18:36

Thanks for your replies, I just can't get my head around the fact the Ltd company can pay the pension contributions into the directors personal pension scheme without the director having to declare it as income or a benefit somehow?

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Replying to Caronlouise:
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By Matrix
04th Nov 2019 19:12

It is part of his remuneration package so is a deductible expense for the employer as any remuneration package would be. This assumes that the salary plus £300 a month pension are commensurate with the duties performed.

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By pauljohnston
06th Nov 2019 18:18

£300 per month is the maximum that can be made without reference to NRA

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Replying to pauljohnston:
Psycho
By Wilson Philips
06th Nov 2019 19:20

Not if it’s an employer contribution.

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