Is a pension contribution allowed???

Will HMRC allow

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I have a small limited company, shareholder and director is one in the same, no employees. He does a limited amount of outside catering about 30k a year (its a side line for him). The company has undistributed profits of 50K. He has started a SSIP for pension and wants to lift 30k from the company as a pension contribution. His financial advisor has advise him that this is fine. I am concerned that HMRC may decide that this is dividend, any advice please.

Replies (7)

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Portia profile image
By Portia Nina Levin
19th Sep 2017 13:00

Never eat yellow snow.

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By Ruddles
19th Sep 2017 14:38

Don't be concerned

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By Mr_awol
19th Sep 2017 16:18

Have you ever put cabbage on your cornflakes?

If so, disengage immediately

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By Tax Dragon
19th Sep 2017 16:47

Don't ask for "any advice" in future.

Of the three above, pick the middle answer; it's not in HMRC's gift to reclassify a payment in relation to an employment as a dividend. It is within their power to impose charges if limits are exceeded; that is where you should focus your attention.

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paddle steamer
19th Sep 2017 17:04

Is the £30k outside catering he does turnover or profit, i.e. can the company get tax relief for the pension contribution?

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20th Sep 2017 13:05

But do make sure that it's an employer contribution, not a personal contribution. Other than that, no issues in a one man company.

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Replying to MBK:
By Ruddles
20th Sep 2017 13:32

Really, no issues?

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