Director pension contribution lump sum?

[everfor]

I am a director of limited company, just realised about the pension.
On march it’s my business financial year, I haven’t contribute any pension so far. I am planning contribute about £10,000 lump sum contribution now through by business account. Already I have drawn 11month salary and dividend for this year, Will be any issue If i contribute lumpsum from my business account ? Will be any issue if i contributing the pension at the end of financial year of £10,000?. And going forward I am planning to contribute every month £500.

Please advise

 

[Rolo Tomasi]

There should not be a problem with the company paying into a pension on your behalf however you need to be aware that contributions are capped at 100% of your 'earnings' and your earnings only include your salary and not any dividends drawn.

 

[David Griffiths]

There should not be a problem with the company paying into a pension on your behalf however you need to be aware that contributions are capped at 100% of your 'earnings' and your earnings only include your salary and not any dividends drawn.

Sorry, but that's just not correct. There is no correlation between employer contributions and the level of salary drawn. There is an annual cap of £50,000 (with the possibility of paying more if there is unused allwance from previous years), and the deduction will be allowable for corporation tax subject to normal rules of "wholly and exclusively" for the trade.

There should be no problem with the OP's proposal, but be aware that the payment must actually be made within the company's financial year.