Pensions Newby

[seeourbee]

Ok pension experts , need help with setting up a pension. I operate through. Ltd company of course and am sole director . I have no pension plan in place yet and have to do the auto enroll thing as per government policy. Originally annoyed, now think it's a good idea. Anyhow, my salary is 13k.

So if my company pays in a big chunk, am I right in assuming my directorship can pay in a similar contribution.? I'm currently looking at the Government NEST pension plan.

How does salary sacrifice work ? 13k salary gives me about £819 per month. So if I give myself a £3k pay rise and then apply salary sacrifice will I get the same net £819 (give or take)?

Do you still get tax relief for pension contributions at 40% or is that about to stop

Would try use google but I'm at work so can't be seen in google and my iPhone is hurting my eyes , hence need your help. Thanks

[Lance]

Ok pension experts , need help with setting up a pension. I operate through. Ltd company of course and am sole director . I have no pension plan in place yet and have to do the auto enroll thing as per government policy. Originally annoyed, now think it's a good idea. Anyhow, my salary is 13k.

So if my company pays in a big chunk, am I right in assuming my directorship can pay in a similar contribution.? I'm currently looking at the Government NEST pension plan.

How does salary sacrifice work ? 13k salary gives me about £819 per month. So if I give myself a £3k pay rise and then apply salary sacrifice will I get the same net £819 (give or take)?

Do you still get tax relief for pension contributions at 40% or is that about to stop

Would try use google but I'm at work so can't be seen in google and my iPhone is hurting my eyes , hence need your help. Thanks

no basic research at all? Just ask an internet forum about the second most important investment of your life?

-no auto-enrol as you're too small.
-If your company pays in then there is no extra tax money. That's only when you pay in after you've paid tax on the money.
- forget salary sacrifice just use company contributions
- no
- no
- use Google when you get home - you can't use Google at work but you can browse forums????? Where the hell do you work?

[seeourbee]

I will research it , have done already. Just confused /not clear.

I thought enrolment was £10k ?

No to 40% relief ?

No to £819 cash ?

When you say 'no extra tax money' what does that even mean ? The company get an allowable expense in the form of pension contributions. If the employee pays in you get a tax allowance in that, i.e. It's deducted from your gross pay before calculating tax.

I'm on a forum on iPhone, not work computer.

[northernladuk]

no basic research at all? Just ask an internet forum about the second most important investment of your life?

-no auto-enrol as you're too small.
-If your company pays in then there is no extra tax money. That's only when you pay in after you've paid tax on the money.
- forget salary sacrifice just use company contributions
- no
- no
- use Google when you get home - you can't use Google at work but you can browse forums????? Where the hell do you work?

To be fair he's only just found out what he is in relation to his company so kind of expected.

[Lance]

I thought enrolment was £10k ?

No. 5 staff.

No to 40% relief ?

Only if you pay your own cash (not companies) into pension and only if that's cash you have already paid tax on.

No to £819 cash ?

Dunno what you mean by this figure. It means nothing to me.

When you say 'no extra tax money' what does that even mean ? The company get an allowable expense in the form of pension contributions. If the employee pays in you get a tax allowance in that, i.e. It's deducted from your gross pay before calculating tax.

You only get relief on contributions made with cash that has already had tax paid on it. So company money into pension gets no relief.
If you take your money out of your salary before tax that IS the tax relief.
I don't know how to explain this more simply. Have you considered asking a professional (they are better at explaining and more patient)?

[seeourbee]

Yes that's what I mean. The £819 is the net cash I get off a £13k salary after deductions - no pension in place yet. So ... if the company deducts £100 say from my personal salary then you get a tax deduction for it. My question was is this still at 40% , I thought that the high rate relief had stopped .

[Lance]

Yes that's what I mean. The £819 is the net cash I get off a £13k salary after deductions - no pension in place yet. So ... if the company deducts £100 say from my personal salary then you get a tax deduction for it. My question was is this still at 40% , I thought that the high rate relief had stopped .

this is now a question on payroll not pensions.
Do you do RTI yet? If not then I'd be more concerned about that than auto-enrol as that IS a legal requirement for you.
Do you have an accountant? He'll answer this easily.

[seeourbee]

I am on rti, yes. Pensions and payroll interlinked.

If can't help me then please let someone else speak

[Lance]

Yes that's what I mean. The £819 is the net cash I get off a £13k salary after deductions - no pension in place yet. So ... if the company deducts £100 say from my personal salary then you get a tax deduction for it. My question was is this still at 40% , I thought that the high rate relief had stopped .

Are you taking the p***?

I've just looked at your other posts. In 2015 you claim to be an accountant. You are clearly either a) NOT an accountant, b) a terrible accountant, or c) a hacker who hacked seeourbee's account in the last few weeks to ask simple questions.

[seeourbee]

Like I said, if you can't help..

Clearly you have too much time on your hands so that you go through old posts. I'm a qualified accountant but haven't done personal tax in much detail in 20years.

Your next insult please ...