Hello,
I've had a look for a similar thread but not seen anything relevant... I may not have been searching for the right thing so apologies if this has been covered time and time again.
We have a client who has a ltd company and is paying himself about £12,000 in salary.
His turnover is high enough and would like to make a contribution maxing out his £40,000 allowance for the 17/18 tax year AND also filling up the remainder of his 40k 16/17 allowance with a further £31,000
Question is:
Is this an ok move to make?
The company has reserves and will turnover enough to be able to afford it.
Under BIM46030 the wholly and exclusively for the trade test seems fine.. he works in the company himself and I can't see anything to suggest he can't do this...
In BIM46035 if the payment is NOT wholly and exclusively for the trade then there are issues they appear to be.
So, in short... with a salary of £12,000, can his company contribute the full £40,000 for the year without any problems? i.e. without HMRC challenging it.
And while I'm at it (separate issue on same subject) .... What is the take on the company paying enough of a pension to put it into a loss position? Can this be done without problems?.. would HMRC challenge it?
Many thanks in advance
