Pension contributions, cash deposits and other financial planning matters to be considered before your financial year end

2020 has been one of the most tumultuous times for businesses, staff, and humanity alike, and many if not all, businesses have had to adapt and change in this new world.

That’s why now more than ever, it is crucial to take stock on what has worked well this year, and review what needs improving, as the countdown to your company year-end approaches.

Now is the perfect time to review your checklist of performance indicators to ensure that your business is performing in line with expectations, so you can effectively plan for the year ahead. Also included should be a review of your financial planning objectives.

To ensure that your business is not missing out on any opportunities and is equipped for any unknown challenges ahead, a consideration should be given to the following:

  • Pre-year end pension contributions for corporation tax relief
  • Reviewing cash deposits, and their underlying rates of interest
  • Utilising accumulated pension plans for business purposes
  • Reviewing Shareholder agreements/succession plans, and associated insurance plans
  • Updating keyperson/business continuity plans
  • Reviewing pension plans as part of your retirement or exit strategy

Most pressing within this list is often pension contributions, as you will have a deadline of your company year-end to pay these to ensure they qualify for corporation tax relief in the intended year.

It makes sense to give priority and to know early on how much you can afford to contribute, and how much you are allowed to contribute for each employee.

Pension contributions are not an end in themselves however, as a pension plan they can be used to great effect for individuals and businesses alike. As well as providing a tried-and-tested retirement planning vehicle, the varied range of investments available mean pensions can be used for the benefits of your company, in a tax-efficient manner.

Businesses should also think about “activating” dormant cash deposits. With interest rates at historical lows and below the major measures of inflation, having a cash management strategy in place to find the higher rates available can mean deposits retaining their real value. To read more about this please see our blog called “How hard are your cash deposits working for you?”

Ignoring these areas can mean missing out on opportunities that could assist your business plans or avoid disruption in the event of a death or illness in the future.

For further information on financial planning for your business, please contact Ian Aldred in the Financial Planning Team on 01772 821021 or email

The LLP trades as MHA Moore and Smalley and is registered to carry on audit work in the UK by The Institute of Chartered Accountants in England and Wales and is authorised and regulated by the Financial Conduct Authority and details of our registration can be viewed at under reference number 448716.