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Where Taxpayers and Advisers Meet

Limited company pension contributions

Cap_Scarlet
Posts:32
Joined:Sun Jun 17, 2018 2:59 pm
Limited company pension contributions

Postby Cap_Scarlet » Fri Nov 23, 2018 10:33 am

I understand taper relief that for every £2 of income over £150k my available tax relief reduces by £1 such that over an income of £210k relief is limited to £10,000.

My question is if my limited company is contributing to a pension on my behalf does that mean that the company would not receive a corporation tax deduction for anything in excess of that?

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Limited company pension contributions

Postby AdamS93 » Fri Nov 23, 2018 10:37 am

The annual allowance charge will be payable by the individual who has exceeded their annual allowance. The tapering rules have caught a lot of people out and they are now being hit with significant tax bills.

If your limited company is making employer contributions, then they are deductible as normal if they are incurred wholly and exclusively for the purpose of the trade.

The wording you have used makes me worry you do not understand the difference between employer contributions (no tax relief for the individual) and personal contributions (basic rate tax relief).

Cap_Scarlet
Posts:32
Joined:Sun Jun 17, 2018 2:59 pm

Re: Limited company pension contributions

Postby Cap_Scarlet » Fri Nov 23, 2018 12:14 pm

The wording you have used makes me worry you do not understand the difference between employer contributions (no tax relief for the individual) and personal contributions (basic rate tax relief).
That's why I am asking - I understand the personal limits but wanted to understand whether there are any limitations on company contributions (other than the wholly and exclusively purpose)


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