Limited company pension contributions

[Napper]

As it says in the title I am a limited company and as I have now collated a buffer in case of ill health or other out of work scenarios I have started to think about using the money to the best of its ability. Thats when I thought about pension contributions.
The question is;
Can I pay into a personal pension directly from the business account?
If so, how much and are there any other constraints?

[PurpleTurtle]

Yes, provided it is a proper, approved pension scheme. I've just set mine up as I'm self-employed (IT contracting) and caught by IR35 rules.

Pension contributions come off the top line before anything is taken into account for tax purposes, subject to a personal maximum contribution of £40k PA of tax-free contibution. If you are cash-rich in your company you can use those allowances going back three years too.

https://www.gov.uk/tax-on-your-private-pension/ann...

As always, speak to a professional to get up to date advice.

See also: http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Edited by PurpleTurtle on Monday 27th October 14:28

Edited by PurpleTurtle on Monday 27th October 14:35

[PurpleMoonlight]

PurpleTurtle said:

Pension contributions come off the top line before anything is taken into account for tax purposes, subject to a personal maximum contribution of £40k PA of tax-free contibution. If you are cash-rich in your company you can use those allowances going back three years too.

£40,000 annual allowance is correct, but you can only carry forward any unused annual allowance from the previous three yeaes if you have some existing pension provision from more than three years ago.

[Napper]

Thanks very much. That's put a smile on my face. I have a few pensions from when I was directly employed so they are official pensions. The fact i can go back 3 years is a great thing to know although I have only been a limited company for 2 years but it does help me plan how to use the money wisely.

Thanks again