Share this content
0
951

Company Payments to a Private Pension for Director

Private Pension Payments treatment in a Co

I wonder if anyone could advise the treatment of private pension payments made at £200 per month paid from a company account.  

Do I treat as an expense and save Corporation Tax, then declare additional income on the Self Assessment for the Director, including the pension payments made.

Or Do I treat the payments as a Directors Loan with it being a private pension rather than a company pension scheme.

Many thanks in advice.

Replies

Please login or register to join the discussion.

avatar
23rd Apr 2018 13:51

It will depend on how the pension provider has treated these payments (gross or with relief at source?).

Thanks (1)
23rd Apr 2018 14:02

Or, put another way, is the contract between the company and the pension company or between the director and the pension company ?

Thanks (1)
avatar
23rd Apr 2018 14:04

If treated as gross payments then surely you don't need to treat as Directors Loan - it just forms part of the Directors remuneration? I don't believe it matters that it isn't a company scheme?

Thanks (1)
23rd Apr 2018 14:40

Were they 'tagged' as employer contributions by the pension provider. There will be a statement as proof if the client 'thinks' they were. This is critical to your subsequent treatment. Find out and report back.

Thanks (2)
avatar
23rd Apr 2018 16:15

I have spoken with the financial advisor who sold the pension to the client, and he says the pension is being paid gross as employer contributions.

Thanks (0)
to Carolynne
23rd Apr 2018 16:25

Then he will very easily be able to email across a statement which supports that, which will give you confidence to treat the payments as a tax-deductible company expense.

Thanks (1)
avatar
to andy.partridge
23rd Apr 2018 16:38

Yes, I have asked for this to be emailed for my file.

Given that it is a gross contribution. Do I need to include other income on the directors tax return with the pension contributions made?

Thanks (0)
to Carolynne
23rd Apr 2018 16:41

Carolynne wrote:

Yes, I have asked for this to be emailed for my file.

Given that it is a gross contribution. Do I need to include other income on the directors tax return with the pension contributions made?

No.

Thanks (1)
to Carolynne
23rd Apr 2018 17:07

No, it's a tax free part of the director's remuneration and is not disclosed on their tax return. If the amount in the tax year was more than £40k report back again!

Ah, I see it's currently £200/month.

Thanks (1)
to Carolynne
23rd Apr 2018 16:28

If that's so, it's a deduction from Corporation Tax profits.

Thanks (1)
avatar
23rd Apr 2018 17:15

Many thanks to everyone for their help today. I will await what the financial advisor sends to me. If he has not been truthful and it is not set up for the employer to pay gross, then I will treat it as a payment to Directors Loan account.

Thanks (0)
avatar
to Carolynne
24th Apr 2018 04:30

Blimey, has this guy previously been found to tell lies to clients about their pension contributions?

Thanks (0)
to Manchester_man
24th Apr 2018 09:41

He's an IFA. 'Nuff said.

Thanks (2)
Share this content