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Limited company - company pension?

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    Limited company - company pension?

    I am a contractor working through my limited company. I wonder if there is a way to have my company make, and expense, pension contributions - vs. me withdrawing dividends and making pension contributions out of my after-tax personal income. Can anyone advise?

    Thank you.

    PS. The "financial advisor" recommended by SJD did not even respond to the email with this query. Fidelity, with whom I hold a SIPP, advised me that "Fidelity does not offer one man limited company pension plans within our Defined Contribution pension arrangements".

    #2
    Yes, yourCo can set up a pension and pay directly into it.

    Give Ian Wilson a call at Forum Wealth. Lovely chap, he'll give you a detailed consultation for free.

    He consolidated various crappy pots into one plan, when all other IFA's told me that wasn't possible.

    Comment


      #3
      As I discovered after a lot of hassle and stress last year, you don't need a company pension scheme to make company contributions. The system is very confused thanks to the requirement for all employers to enrol employees in a company pension scheme, and I was also told by several people that they don't do pension schemes for one man Ltd. companies. But that doesn't apply to the likes of us.

      Like you, I was asking the wrong question. Ask Fidelity if your employer can make contributions to your personal pension.
      Will work inside IR35. Or for food.

      Comment


        #4
        My company makes employers contributions to a stakeholder pension. This was a stakeholder I had from a previous employment. Stakeholder can take both personal payments and employer payments.

        Alternatively, if you are an IPSE member, then you could take a look at their offering:
        https://www.ipse.co.uk/futures/ipse-pension

        Comment


          #5
          Originally posted by demyan1 View Post
          Fidelity, with whom I hold a SIPP, advised me that "Fidelity does not offer one man limited company pension plans within our Defined Contribution pension arrangements".
          As others have said, you asked the wrong question.
          You can pay from your company directly into a Fidelity SIPP
          At this link there are at least 2 places that mention employer contributions.
          https://www.fidelity.co.uk/investor/...asket-employer

          What they probably said was that your company cannot setup a SIPP for you (which they can't, it's PERSONAL).
          I opened my SIPP using £80 of my own cash and setup company contributions once it was activated. That was Hargreaves Landsdown.
          See You Next Tuesday

          Comment


            #6
            Originally posted by demyan1 View Post
            I wonder if there is a way to have my company make, and expense, pension contributions - vs. me withdrawing dividends and making pension contributions out of my after-tax personal income.
            The advantage is if the company pays directly into your SIPP then you are not bound by the earnings cap. You can give yourself up to the full £40k irrespective of what you 'earn'.
            "Don't part with your illusions; when they are gone you may still exist, but you have ceased to live" Mark Twain

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              #7
              Originally posted by Cirrus View Post
              The advantage is if the company pays directly into your SIPP then you are not bound by the earnings cap. You can give yourself up to the full £40k irrespective of what you 'earn'.
              Indeed. You also bypass the possibility of having to pay both Employer's and Employee's NI on the amount being paid into the pension.

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                #8
                Originally posted by Cirrus View Post
                The advantage is if the company pays directly into your SIPP then you are not bound by the earnings cap. You can give yourself up to the full £40k irrespective of what you 'earn'.
                Sorry, where does the £40k number come from?

                Comment


                  #9
                  Originally posted by demyan1 View Post
                  Sorry, where does the £40k number come from?
                  http://www.pensionsadvisoryservice.o...nual-allowance
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by Lance View Post
                    I opened my SIPP using £80 of my own cash and setup company contributions once it was activated. That was Hargreaves Landsdown.
                    Were you then able to expense the company contributions, i.e. deduct them when calculating corporation-tax liability?

                    Comment

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