Hi, This may seem like a very tedious question to some of you, but I come from a very small department that I run and I always tend to do the same typical accountancy and tax services with a few odd topics that I read up on, so please bear with me.
I have a client who is a director of a limited company. He has begun paying into a company pension through the business. I am aware that as it is not a typical employee and employer contributes set up, I do not have to process the pension contribution through the payroll.
This then leads me to the confusion over what next. I understand how to disclose the pension contributions in the company accounts and the correct tax treatment for corporation tax, however do I not need to disclose that he has received this remuneration on his personal self assessment to be included in his taxable income?
If I do disclose it, how do I obtain that information, as it will not be included in his P60 as it isn't being processed through the payroll.
Sorry to ask what may seem a bizarre question, but it is difficult to remember things after learning in college a long time ago and then never putting it into practice. I guess I am just safeguarding against any unpleasant comments from members who feel my question isn't worthy of this forum. However I would see this question as being perfectly acceptable here as this website wasn't designed for accountants who know everything and just want to discuss technical loopholes and reforms. (not everyone is a tax specialist, a lot are students or work in small practices on their own so have no-one to bounce/discuss topics with and have small clients who require a rounder accountant who provides constant contact, business advice and a more personal and involved service.
Any help/advice would be greatly appreciated, thank you.