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Contractor SIPP (advice for 2013)

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    #41
    Originally posted by lukemg View Post
    Finally - make sure you max out your ISA first, much more flexible access options.
    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?

    [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

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      #42
      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.
      Public Service Posting by the BBC - Bloggs Bulls**t Corp.
      Officially CUK certified - Thick as f**k.

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        #43
        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.

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          #44
          Originally posted by lukemg View Post
          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.
          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.
          Public Service Posting by the BBC - Bloggs Bulls**t Corp.
          Officially CUK certified - Thick as f**k.

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            #45
            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)?

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              #46
              Originally posted by faxfan View Post
              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)?
              Yes, SIPP contributions are an allowable expense for your co ltd. As a bonus, it "IR35 proofs" that portion of your turnover too.
              Public Service Posting by the BBC - Bloggs Bulls**t Corp.
              Officially CUK certified - Thick as f**k.

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                #47
                Efficient Market Hypothesis / Random Walk

                For anyone who's interested.

                http://emlab.berkeley.edu/~craine/Ec...ent%20Mkts.pdf

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