Company director pension

[Spritzer]

Hi all
I have a relately new company (1.5 years) with Dec year end which I am director of . The company is making pension contributions of 9k per annum on monthly basis. My plan is to take a relatively small salary 50k, and use the remainder to pay into a pension. Likely income to be around 120-150k per annum.

I expect to have a profit of 30-40 k this year after salary and the existing pension and would ideally put 25k into pension . However cash flow is an issue as my income is subject to PSWT tax at 20% which are not refundable until after ct return is filed and my main customer are usually about 60 days behind in paying my invoices.

Can I declare a company pension contribution in my 2024 accounts but pay it in 2025? Or am I just caught this year with cash flow issues and it will resolve next year?

Thanks

 

[Dave Vanian]

From January next year you'll be able to put 100% of salary into a PRSA. Depending on your age and other details you might or might not be able to put more into a Master Trust. That might be okay for you. Your financial broker should be able to compare the two in your specific circumstances.

If you're keen to get a contribution in this year, you could give your company a director's loan to put into a pension and then repay it when the clients pay up.