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rozt


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Directors Drawings
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Hi All

Another question, if a personal pension is paid direct out of a company's bank account and not through payroll, how do I deal with that?

Thanks in advance

Roz



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Robert Pearce


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If the company is contributing to the director's personal pension scheme, then the payments would be posted to the profit and loss account.



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rozt


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Thanks that's great, so the scheme can just go through P&L and there doesn't have to be any other treatment?

 

Thanks



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Shamus


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Hi Roz,

it's not so easy to assume that a directors pension is a personal one. An executive pension plan is taken through the company even though there will be only one named beneficiary of the pension.

In either instance the pension contributions are an expense of the business but where personal pension is a benefit (although a tax free one) an executive pension belongs to the company rather than the individual director so is not.

The technicalities of this are really more financal / pension advisor territory and I'm a bit out of my depth with it (and I've worked in Pensions!) but for our purposes just consider the payments as an expense of the business.

kind regards,

Shaun.

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Shaun

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rozt


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Thank you for your answers. I'm going to find out first what kind of pension it is..

Roz

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