I have a small (very small) Ltd. company, and have been making employer direct pension contributions alongside salary and sometimes dividend (being 100% strict with not exceeding any annual personal allowances over the SIPP years).
Question: My company year end is August 31st. Do I have to make great efforts to get my pension contributions paid before the 31st, in order to attribute this cost in this accounting year for my company? or is HMRC ok with it being accounted for on the books and then paid when funds are available in a few months?
The advantage of doing so is a reduction in tax payable for this year, the alternative presumably is to offset the profit against a loss next year (if I simply attribute this year's pension cost to next year's accounts when I would prefer to pay it), however this will mean I have to pay tax to be reclaimed, which I'd prefer not to do.
At present I have assumed that as there is no difference in overall tax revenue to HMRC, and my pension provider states that they can forsee no problems either way from HMRC, that there isn't a rush to transfer the cash before my year end (tomorrow!). However I've been impressed with the level of advice here, and thought I'd thow the question out, so that I get a bit more certainty over the decision..................