Directors Pensions

[jumper1]

Hi ,

have a question regarding a Directors Pension .

I am a Director(Aged 54) in a Company( for 10 Years) and if the Company sets up a Directors Pension for me (in 2018) and contributes €10,000(Company profit) to my Directors pension in 2018, what Tax does the Company Pay and what tax might I have to pay on that €10,000 contribution to my Directors Pension. I get a salary of €50,000 a year from the Company(no other income).

Thanks .

 

[Conan]

Any Company contribution to such a Plan is treated as a Trading Expense for Corporation Tax purposes and is not treated as BIK in your hands.

 

[Boru38]

Just on question above as a Director and sole employee of a Ltd Company , Is it more beneficial to make contributions from company profit or make personal contributions from gross salary ?

 

[Conan]

If the co. makes the total contribution it is allowable under Corp. Tax.
If the company pays some of the money to you as Salary it is still deductible under CT. And if you then make make that contribution personally it is deductible against Income Tax.
So it’s a zero sum game. Probably simpler to make total contribution from Co.

 

[Steven Barrett]

Personal contributions are liable to USC and PRSI. If you made the contributions directly from the company, they wouldn't.




Steven
www.bluewaterfp.ie

 

[Boru38]

Thanks Stephen that's what I thought , So bottom line is contributions direct from company are best