Postby braintree » Thu Sep 10, 2015 6:03 pm
John
Thank you for your reply. The payment would be paid from the company into the director's SIPP. The amount would use up a couple of years of unused personal pension allowances, so if this is what you refer to then no, it would not exceed allowable limits. It would account for most of the pre-tax profits for the year, but the amount will be broadly in line with the amount the director has taken in previous years as dividends.
I had thought that all pension contributions had to be approved by HMRC. Maybe I am simply misunderstanding what is meant by this, i.e. no special procedure is required? The payment is just made, and if HMRC raise a query, then the query is answered and they make a decision accordingly. is that in fact how it works?
Thanks!