Employer contribtions to SIPP - but receiving minimal income

[Sparkysea]

Hi all

I am an employee of my limited company. I pay myself a salary and dividends as I need it. I also receive an income from lodgers and tenants. At the moment I mainly using my income from my lodgers and tenants to live off.

I wish to build up my SIPP. Please can you advise whether I can make employer contributions from my limited company into my SIPP without paying the same or similar amount to myself as income?

Your suggestions/advice would be most welcome

Sparky

[PurpleMoonlight]

Providing you are a Director, yes it will be fine.

[JulianPH]

And you also have the advantage of side stepping National Insurance on the contributions.

[Sparkysea]

Many thanks. Do you know if there would be a limit ie of money I can add per year
Sparky

[PurpleMoonlight]

£40,000 pa assuming your income (broadly everything on your tax return) is less than £150,000.

There is also the ability to carry forward any unused contribution allowance from up to the previous three tax years providing you had some pension provision existing for those tax years.

[trickywoo]

PurpleMoonlight said:

£40,000 pa assuming your income (broadly everything on your tax return) is less than £150,000.

There is also the ability to carry forward any unused contribution allowance from up to the previous three tax years providing you had some pension provision existing for those tax years.

This. It comes out pre tax (like an expense) so you save the corporation tax that would have been levied on the amount as profit.

[98elise]

I am in almost exactly the same position as you, but I've started the company contributions, having paid nothing into pensions for the past few years.

I can put away up to 80k per year for the next 3 years, and at age 51 I would be mad not to.

[Sparkysea]

Ok Guys, many thanks for your responses... just wanted to make sure I'm doing everything on the right side of the law and all that...
Sparky

[Sparkysea]

Sorry just want to check this again... I was wondering if Eric could answer please as I understand he is an accountant....

Is it correct that even if I do not have any relevant UK earnings, my employer can still make contributions up to the annual allowance (currently £40,000) to a SIPP.

Thank you