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Post Info TOPIC: Limited company pension contribution query
italiano12


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Limited company pension contribution query
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Hi,

 I have a question regarding employer pension contribution from an LTD company where my wife is the sole employee. 

I understand the company can contribute to her pension.

She does not have the money in the business account as she took them as dividends and salary. Would it be ok to transfer 30000£ from personal account to the business account in order to make the pension contribution from the company? The amount would match the profit the company would make for this year.

 

Thank you for your time,

Alin



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Cheshire


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This is a forum for professionals not business owners so sorry we cannot help you on here.

Best person to ask is a suitably qualified Accountant or a super duper independent Financial advisor.

 

Edited to correct typo



-- Edited by Cheshire on Thursday 15th of March 2018 01:59:01 PM

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Artois


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italiano12 wrote:

Would it be ok to transfer 30000£ from personal account to the business account 

 That's a lot of money to be asking strangers on a forum to advise you on, as Joanne suggests appointing a suitable professional is the best way forward 



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice
pictures


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The company I work for often makes lump sum pension contributions for the directors. However this is always done in collaboration with advice from both the accountant and the IFA the company uses for all pension matters.

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Julie
Casu


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will have the profit, but doesnt have the cash!

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Caron
Shamus


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There are a lot of questions opened up by the original post as to the reltionship between the wife and the business, revenue recognition, existing level of pension holding, was the company in a position to pay a dividend (considering that it now has no money). Which company year are you referring to? etc.

Another case of a post where even the most well meaning advice given here can end up quite dangerous due to the lack of knowledge about the full scenario.

Only advice that I am willing to give echoes the sentiment of others here in that you should talk to the company accountant.

Oh, and remember one golden rule "Dividends can only be taken from profit or brought forwards retained earnings" (no suggestion that you have brokn that rule but just ensuring that you know it).

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Cheshire


Master Book-keeper

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Im wondering why the wife cant ask for herself! Not that she would get a different answer. Just my random thoughts

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
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