Company making Pension Contributions for Director

[QED]

I am preparing a Personal tax return for a friend. He is a director and employee of a small company. The company paid approx €5k pension for him in 2007 but this was not included in P35 - Should it have been? (I don't have any info on type of pension etc. - it was included as expense in the company accounts)

Assuming that it should have been, is it now ok to include this amount as income in personal tax return and pay tax on it this way?

Then I can enter these 2007 payments and payments from Jan - Aug 08 as deductions in the 2007 tax return?

 

[secman]

Was the pension set up by the company or the Director in a personal capacity. If the Company set up a Directors Pension scheme, it should be included in the Company's P&L account as an overhead, and should not be included in the P35.

On the other hand if the Director had his own pension scheme set up and the company made contributions on his behalf, these payments should be included in P35.

Check with the Financial Advisor who set up the Pension Scheme and you will be able to make a call on it once you have the Full information and all the facts relating to the scheme. There should be a Policy document in force and whose name is the Policy in ? Get the facts, make NO presumptions.

Secman