SIPP Contributions

**mudskipper** · 16 April 2016, 10:12

Originally posted by Ret View Post

Hello,

As part of setting up a regular pension contribution I have been asked firstly whether I am employed or self-employed and secondly what my current annual "relevant UK earnings" are. Reading around, there seem to be conflicting messages around whether a company director in a single man company is classed for tax purposes as employed or not. What should I be saying I am? I operate outside of IR35 if that makes any difference.

Will my relevant UK earnings then be my salary (ie £8,060) or the company earnings?

I was just a little worried that putting the wrong information on this form will affect my tax position.

Cheers!

I think it depends on the purpose of the question. From a pension point of view, you're employed - yourCo employs you, and yourCo can make employer contributions, or you can make personal contributions.

YourCo can make employer contributions > salary, but you can only make personal contributions <= salary. Most LtdCo contractors make contributions directly from theirCo for that reason.

IANAFA, DYOR etc...

**Boo** · 16 April 2016, 12:14

Originally posted by mudskipper View Post

YourCo can make employer contributions > salary, but you can only make personal contributions <= salary. Most LtdCo contractors make contributions directly from theirCo for that reason...

Can you (or anyone) tell me what are limites and tax implications on company contributions to Director's pension schemes, please ? Or if anyone knows a good (ie simple) explanation on the web a link would be appreciated.

Thanks,

Boo

**mudskipper** · 16 April 2016, 12:35

Originally posted by Boo View Post

Can you (or anyone) tell me what are limites and tax implications on company contributions to Director's pension schemes, please ? Or if anyone knows a good (ie simple) explanation on the web a link would be appreciated.

Thanks,

Boo

I think it's vague - you'd need to speak to an IFA.

**ruasonid** · 16 April 2016, 13:09

Originally posted by Boo View Post

Can you (or anyone) tell me what are limites and tax implications on company contributions to Director's pension schemes, please ? Or if anyone knows a good (ie simple) explanation on the web a link would be appreciated.

Thanks,

Boo

Well the limit is currently 40,000 in total for company and personal contributions during the input period. And that is the gross amount, so any personal contribution would be net of tax relief. The tax implication of the company contribution is CT is not applied, e.g. if your company makes a 10,000 contribution your company would otherwise have paid 20% CT (i.e. 2000).

**syrio** · 16 April 2016, 14:42

Are you making personal contributions or company contributions ? You don't say.

For the self-employed vs employed question you are employed and relevant earings will be your salary. However as you are on a small salary I'd have thought you want to be making company contributions and it sounds like you are making personal ones.

There are lots of other threads explaining pensions, have a look at those.

https://www.google.co.uk/search?q=co...hrome&ie=UTF-8

SIPP Contributions