Help please: A single owner/director of a ltd company wants to make a director company pension contribution of £8,000 for the financial year. However, in the financial year there is no company income but it has reserves of £25,000 brought forward from last year. This pension contribution, coupled with a few other small expenses will result in the company making a loss. However, after these expenses company still has further reserves left carried forward into next year. Question is can the company make the pension contribution.
He made a similar company pension contribution last year too, but last year company had income and it paid corporation tax on profit, plus had reserves of £25,000 carried forward at the end. However, the director has temporarily gone into full time employment but has kept the company open in case he decides to go contracting again soon in future.
Another point is that the pension provider has taken the money out on 5Dec17, the financial year end for the company was 30Nov17. Can this pension deduction go into 30Nov17 year end.
Would appreciate a reply