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Company pension contribution for a former Director

Can a Company make pension contributions for a former Director

Father had retired as a Director from hios family business now run by his son. Does a bit of unpaid work for the Company from time to time.

Company is still paying 3,600 into his pension fund; just checking there are no issues with this and that it is tax deductible for the Company. I dont think there are any issues but just checking. He makes no other contributions and he is way below any annual or lifetime pension allowances.

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10th Jan 2019 11:26

He's not "unpaid" if he's being paid £3,600pa, is he?

Whether that £3,600 is commensurate with the work he does may have some bearing on the tax deductibility.

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10th Jan 2019 12:22

If he isn't an employee, then I would also be concerned about how the father has treated this payment.

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10th Jan 2019 15:22

Both previous posts are right in my view. I would only add that as long as it's an employer contribution (and not the company meeting the cost of a personal contribution by the retired director) and it's commensurate with the value of work done then there's nothing to be troubled about as the payment is tax deductible for the company and doesn't count as earning or any other type of taxable income for the former director.

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