Hi,
I have retired but kept my company going due to the large amount of retained profits. Company has not been trading for almost 2 years now and is not registered as dormant. I am not drawing a salary but taking dividends up to the 20% tax limit. I estimate that it would take me around 10 years to reduce the retained profits down to a reasonable level for winding up without going for MVL. I was told that going the MVL route does not guarantee that HMRC will apply the 10% Entrepreneur's Relief.
I would like to know if it is possible to pay an employer pension contribution up to the £40k limit to my SIPP account using the retained profits and how is this treated by HMRC? Has anyone successfully contributed to their personal pension/SIPP using the retained profits?
Any contribution to this thread is appreciated and thanking you in advance.
I have retired but kept my company going due to the large amount of retained profits. Company has not been trading for almost 2 years now and is not registered as dormant. I am not drawing a salary but taking dividends up to the 20% tax limit. I estimate that it would take me around 10 years to reduce the retained profits down to a reasonable level for winding up without going for MVL. I was told that going the MVL route does not guarantee that HMRC will apply the 10% Entrepreneur's Relief.
I would like to know if it is possible to pay an employer pension contribution up to the £40k limit to my SIPP account using the retained profits and how is this treated by HMRC? Has anyone successfully contributed to their personal pension/SIPP using the retained profits?
Any contribution to this thread is appreciated and thanking you in advance.
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