Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 28 Mar 2024 07:39:44 GMT by Raymond
I am enquiring whether tax relief applies in the following case. A Ltd Co, one director, no other employee, SIPP was opened ofter appointing the director, director receives no renumeration from the Ltd Co, company is a trading business and makes profit. Can the director make pension contribution into his / her SIPP? Will this contribution be treated as business expense? Does the contribution qualify for tax relief? What is the limit of the contribution in one tax year?
Posted Tue, 02 Apr 2024 14:57:10 GMT by HMRC Admin 2

Yes, a payment can still be made to the SIPP as this confirms the maximum that can be paid.

Tax on your private pension contributions

The contribution is not a business expense.

Thank you.
Posted Tue, 02 Apr 2024 16:03:57 GMT by Raymond
Just to confirm; If a director / employer of a Ltd Co, makes contributions to a SIPP out of the business fund, the contribution it is not treated as a business expense? So why do pension providers insist that directors contribution to a SIPP will be offset against the corporation tax of the Ltd Company? Many thanks.
Posted Tue, 09 Apr 2024 13:53:43 GMT by HMRC Admin 5
Hi Raymond

Your employer is making these payments into the pension fund out of the business fund, on your behalf, so they need to set this against their business tax.  
You are not making the payments, so you cannot claim tax relief.

Thank you
Posted Sun, 21 Apr 2024 05:09:16 GMT by Raymond
I am not sure if I explained this well. Here is my question put in a clearer manner; I am the sole director and employer of my own Ltd Co working in the building trade. I receive no renumeration from my Ltd Co, as I have other income from property investment. There are no one else working for my Ltd Co but me. My Ltd Co pays contribution into my SIPP from the business bank account. Would the contribution the business makes into my SIPP qualify as business expense? Thanks
Posted Tue, 23 Apr 2024 10:38:30 GMT by HMRC Admin 17

Hi ,
Please review PTM043100 - Contributions: tax relief for employers:

introduction, this implyes that all contributions into your employees pension can be deducted.

In this mater contribution made on behalf of the director are the same as employess .  

Thank you 

You must be signed in to post in this forum.