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The accounting period (ap) for a small company was 31

Customer Question

The accounting period (ap) for a small company was 31 January 2016. A pension contribution was paid for the director on 27 February 2016. Can this pension payment be accrued for and included as an expense in the accounts to 31 January 2016.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

In my opinion this cannot be allowed as the actual payment was made in a later accounting period. Royal London advise:

'Remember, tax relief can only be given on contributions that have actually been paid'

However, it might be possible to approach the relevant tax office for advise as HMRC may be inclined to allow the charge against current year.

Remember that there is an annual limit on pension contributions, the combined total of own and employer's may not exceed 40K.

I do hope that you find my reply of assistance.