Pension for sole Ltd co director
Discussion
Can anyone point me in the direction of a flexible pension solution for a director of Ltd co (me).
The company is essentially a one man operation and I wish to maximise whatever pension allowance I can from profits before tax, we are not talking mega bucks but it would potentially be a nice contribution, but perhaps it would not always be possible to pay into it, so I need something that allows for lump sums if possible rather than regular payments.
The company is essentially a one man operation and I wish to maximise whatever pension allowance I can from profits before tax, we are not talking mega bucks but it would potentially be a nice contribution, but perhaps it would not always be possible to pay into it, so I need something that allows for lump sums if possible rather than regular payments.
Canute said:
Can anyone point me in the direction of a flexible pension solution for a director of Ltd co (me).
The company is essentially a one man operation and I wish to maximise whatever pension allowance I can from profits before tax, we are not talking mega bucks but it would potentially be a nice contribution, but perhaps it would not always be possible to pay into it, so I need something that allows for lump sums if possible rather than regular payments.
Have a read of the IM sticky at the top of this sub forum.The company is essentially a one man operation and I wish to maximise whatever pension allowance I can from profits before tax, we are not talking mega bucks but it would potentially be a nice contribution, but perhaps it would not always be possible to pay into it, so I need something that allows for lump sums if possible rather than regular payments.
Canute said:
Ok, thanks chaps.
I should have mentioned I'm not currently UK resident, so I need some advice with someone that can deal with "passporting" I'm told, if that makes sense with anyone here?
Providing you are a UK citizen with net relevant earnings in the UK you can go ahead directly with a UK provider without taking regulated advice (and paying for it).I should have mentioned I'm not currently UK resident, so I need some advice with someone that can deal with "passporting" I'm told, if that makes sense with anyone here?
You don't need to go anywhere near "passporting" firms.
Please bear in mind that you will automatically fail the standard electronic checks (due to not being a UK resident) and will be asked to provide additional information before the pension/SIPP can be opened and funded. This is normal in your circumstances, but it is helpful to be aware of this ahead so it doesn't come as a surprise!
In relation to your OP, virtually every modern pension/SIPP will allow you to do what you are looking to do with full flexibility.
Thanks for the clarification, having spoken to one or two firms this morning including the one mentioned above none of them seemed too sure of themselves as to what I'm allowed to do and wanted me to seek a financial advisor who could legally give me advice whilst I'm outside of the UK.
Stay in Bed Instead said:
Are you receiving an income from your Ltd upon which UK tax is assessible, eg salary, dividends?
Not at present as the company is just sitting dormant, although if what I can establish through this post and other research concludes I can do this then the business will be operational and profitable for me to withdraw funds from it almost from the point I commence. But I don't want to do anything with the Ltd until I can confirm properly, and how to, extract profit from the business and direct into a UK pension. Canute said:
Thanks for the clarification, having spoken to one or two firms this morning including the one mentioned above none of them seemed too sure of themselves as to what I'm allowed to do and wanted me to seek a financial advisor who could legally give me advice whilst I'm outside of the UK.
I sometimes despair at the level of customer service available from some providers, it is not rocket science. You do not need to use (and therefore pay) a financial adviser, you need to use a provider that understands the rules!
Regarding you latest post. I can confirm that you are able to do what you are looking to do whilst you have net relevant earnings in the UK that are taxable here. Without these you cannot.
JulianPH said:
I sometimes despair at the level of customer service available from some providers, it is not rocket science.
You do not need to use (and therefore pay) a financial adviser, you need to use a provider that understands the rules!
Regarding you latest post. I can confirm that you are able to do what you are looking to do whilst you have net relevant earnings in the UK that are taxable here. Without these you cannot.
May I contact you via DM Julian? you seem to know your onions :-) You do not need to use (and therefore pay) a financial adviser, you need to use a provider that understands the rules!
Regarding you latest post. I can confirm that you are able to do what you are looking to do whilst you have net relevant earnings in the UK that are taxable here. Without these you cannot.
JulianPH said:
Regarding you latest post. I can confirm that you are able to do what you are looking to do whilst you have net relevant earnings in the UK that are taxable here. Without these you cannot.
...but if it is a 'company' contribution (effectively employer contribution) is the whole Net Relevant Earnings thing not irrelevant ? Stay in Bed Instead said:
Are you receiving an income from your Ltd upon which UK tax is assessible, eg salary, dividends?
Not sure if this is relevant to the OP’s case but surely if somebody isn’t paying tax in the UK there’s no point in paying into a Pension ( since there isn’t any tax relief to be obtained) and therefore you might as well pay into an ISA?OddCat said:
JulianPH said:
Regarding you latest post. I can confirm that you are able to do what you are looking to do whilst you have net relevant earnings in the UK that are taxable here. Without these you cannot.
...but if it is a 'company' contribution (effectively employer contribution) is the whole Net Relevant Earnings thing not irrelevant ? You are correct though in that the employer contribution is not dependent on the level of these earning, but having such earnings is very relevant.
Perhaps clumsy wording on my part!
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