Recently I had to take an insider IR35 contract via an umbrella (handed in P45 already), so I am thinking of closing down my company in the near future and take the entrepreneurs relief. But I would like to use my company funds to make contributions to my pension before shutting down the company. I have had some pensions from my pervious permie roles years ago but never paid any contributions since. I understand that my company can pay into a pension 40k each year and carry forward the previous three tax years. The tricky thing is that in my current company accounting year (November 2019), my company has had no income due to me being out of contract and it doesn't look like going to have any income for the whole accounting year as I am now using an umbrella. Someone told me that I am likely to run into the following troubles:
1. Given my company has not got any income this year, it won't be allowed to pay any contributions from retained fund as pension contributions can only be from the current year's income.
Is this true?
2. If I pay 3 or 4 years contributions, it will cause a massive loss to the current accounting year, then it may trigger an inland revenue enquiry, particularly if I close down the company shortly after as the payment may be regarded as not wholly and exclusively for keeping the company trading, instead, it is effectively paying for the company to ceasing trading.
How true is this? If I delay the company closure, will that help to mitigate this risk?
3. If the above two were both false, will I be able to claim any past corporation tax rebates for the loss in the current year? My last year's account has not been submitted and corporation tax for the last year has not been paid yet.