DIY Pensions Advice for a Limited Company!

[cwah]

In this scenario, if you paid £50k into your pension (given you haven't contributed in previous years), your profit would then be £0 so no CT to pay ?

My understanding is that although you won't pay corporation tax, you still have to pay additional income tax because its above the £40k threshold

[Fred Bloggs]

My understanding is that although you won't pay corporation tax, you still have to pay additional income tax because its above the £40k threshold

Provided you were a member of a pension plan (any pension plan) in the previous year and provided you made less than £30k contribution to it, then carry forward applies. As in £40k for the present year and £10k carried forward from the previous year. By way of illustration for two years running I contributed £80k into my SIPP using carry forward rules (£160k total). HTH.

[Orangecat]

Hi there,

I have a silly question: I have old private pension from my ex employers. Can my Ltd company directly contribute to them or do I have to open up a new SIPP for my ltd company to contribute to for the tax etc?

I have 3 old pension funds which I didn't contribute since 2016, one of them, L&G said they can accept new employer contribution..

Separately, can the ltd do one lump sum contribution or it need to be every month?

I am reasonably clear on the personal contribution rules, not sure about ltd contribution as new to this part.

Thanks a lot.

[Fred Bloggs]

Hi there,

I have a silly question: I have old private pension from my ex employers. Can my Ltd company directly contribute to them or do I have to open up a new SIPP for my ltd company to contribute to for the tax etc?

I have 3 old pension funds which I didn't contribute since 2016, one of them, L&G said they can accept new employer contribution..

Separately, can the ltd do one lump sum contribution or it need to be every month?

I am reasonably clear on the personal contribution rules, not sure about ltd contribution as new to this part.

Thanks a lot.

Only the companies holding those pots of money can answer your questions. A very good strategy to consider would be to open a new pension (SIPP) and move those various pots into it. Many folks do that, putting everything in one place makes it far easier to manage. There is no problem contributing monthly or and hoc lump sums. But you must tell the pension platform they are company contributions. That bit is essential. I recommend you look at AJ Bell for smaller pots (0.25% fee) or Interactive Investor for larger pots, flat rate fee independent of pot size. HTH.

[Contreras]

I have old private pension from my ex employers. Can my Ltd company directly contribute to them or do I have to open up a new SIPP for my ltd company to contribute to for the tax etc?

Technically - yes, if the schemes will allow it. Practically - try not to let the tax tail wag the dog, think carefully whether those old schemes are worth it.

Only the companies holding those pots of money can answer your questions. A very good strategy to consider would be to open a new pension (SIPP) and move those various pots into it. Many folks do that, putting everything in one place makes it far easier to manage. There is no problem contributing monthly or and hoc lump sums. But you must tell the pension platform they are company contributions. That bit is essential. I recommend you look at AJ Bell for smaller pots (0.25% fee) or Interactive Investor for larger pots, flat rate fee independent of pot size. HTH.

Good advice ^. Except personally I prefer not to have ALL eggs in one basket.

[Fred Bloggs]

Old farts like me will be pleased to know that II SIPP have dropped their drawdown fees. Previously, you paid £10 a month for the SIPP account and another £10 per month drawdown fee, even if you had zero £ drawdown. So, effectively, running a SIPP in drawdown at II effectively halves in monthly cost from October 1st. Thanks II. Very much appreciated.