Can you backdate a company pension contribution

Can you backdate a company pension contribution

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Client's Limited Company had a very good year to June 30th 2018 making a nice profit and they now want to accrue a pension contribution for the year to June 30th.

I'm pretty sure that is not possible but thought it worth just checking. My understanding was that a company pension contribution can only be put through the accounts in the year it is paid. Is this correct?

Thank you

Replies (8)

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By Ruddles
30th Oct 2018 19:07

No it is not correct.

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JCACE
By jcace
30th Oct 2018 19:59

Tax relief can only be given on contributions that have actually been paid. The amount shown in the profit and loss account in respect of the obligations of defined benefit schemes may be substantially different from the amount of contributions paid to the scheme, but it is only the amount actually paid that can be considered for tax relief.

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Replying to jcace:
By Ruddles
30th Oct 2018 20:17

Very informative I’m sure but there was no mention of tax anywhere in the question.

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Replying to Ruddles:
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By paulhammett
30th Oct 2018 21:20

True, but I suspect that was the point of the question. Could be wrong, of course.

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Replying to paulhammett:
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By Amberleaf
30th Oct 2018 22:44

I agree the OP was specifically referring to cash paid basis which implies tax treatment, though the OP might have been confused or not fully explaining the question.

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By anneaccountant
30th Oct 2018 23:02

Sorry if the question was not precise enough. Basically the company made a good profit in the year to June 2018 and the client is asking can they put through (accrue) a pension contribution now and include it in the June 2018 Accounts to reduce the 2018 taxable profit.
I am pretty sure the answer is no because I believe only contributions actually paid during the accounting period can be set against profit.
I just wanted to be sure

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Replying to anneaccountant:
By Ruddles
30th Oct 2018 23:09

Now that you’ve clarified I confirm that your understanding is correct.

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By JD
31st Oct 2018 21:07

Size of profits and contribution dependent, presumably if the contribution in the current year creates a loss, the loss can be carried back.

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