Super poster
Trouble with this though is you need to pay the tax to get it out the Ltd - which unless you can get by on less than the 40% threshold will cost... which is a reason to look at investing from the company no?Originally Posted by lukemg
[Edit: will cost regardless of which tax band you're in]
"Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny. "
Thomas Jefferson
Godlike
If you make company funded SIPP contributions you tell HL (or whoever) of that fact and they then do not make a tax claim. It's very tax efficient way to get the money out of the company.
Contractor Among Contractors
Agreed - for getting money out of the company it is a good option if that is first priority but if it's personal contributions it's not as clear.
Personally I am doing both because I can see 55 from here but if I was 32, I might want a bit more control.
Godlike
The closer you are to 55 (I'm 56) the more attractive it becomes as you can take the 25% tax free lump sum from age 55 onwards. I'm maxing out my SIPP contributions.
Nervous Newbie
So for contributions from my own limited company it's just a very tax efficient way of taking money out of the company - basically I don't pay any tax when taking that money out (as opposed to divi tax etc. if I was doing contributions from a personal source)?
Godlike
Yes, SIPP contributions are an allowable expense for your co ltd. As a bonus, it "IR35 proofs" that portion of your turnover too.
Godlike
Efficient Market Hypothesis / Random Walk
For anyone who's interested.
http://emlab.berkeley.edu/~craine/Ec...ent%20Mkts.pdf
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