Small Company Pension Scheme?
Discussion
My accountant is on chemotherapy at the moment so I don't want to burden her too much.
My Ltd one-man-band company is currently fairly cash rich. It wouldn't miss, say, £40-50,000 after allowing for corporation tax and other liabilities. My pension was trashed a few years ago following divorce. I really need to be paying some significant sums into a pension fund (or something). The P&L doesn't allow me to make use of this cash as dividends due to the accrued start-up losses being overtaken by profit only earlier this year.
I've done some Googling but can't find any unbiased information on how to set up a very small business pension and to maximise the opportunities from the perspective of a small business director and 100% shareholder. My son might benefit too as a director and part time employee.
Could somebody set me off in the right direction or point me to some good resource please? Is this more of a job for an IFA than an accountant?
Thank you
"Reg"
My Ltd one-man-band company is currently fairly cash rich. It wouldn't miss, say, £40-50,000 after allowing for corporation tax and other liabilities. My pension was trashed a few years ago following divorce. I really need to be paying some significant sums into a pension fund (or something). The P&L doesn't allow me to make use of this cash as dividends due to the accrued start-up losses being overtaken by profit only earlier this year.
I've done some Googling but can't find any unbiased information on how to set up a very small business pension and to maximise the opportunities from the perspective of a small business director and 100% shareholder. My son might benefit too as a director and part time employee.
Could somebody set me off in the right direction or point me to some good resource please? Is this more of a job for an IFA than an accountant?
Thank you
"Reg"
Yes, speak to an IFA.
You can contribute £40,000 pa and bring forward any unused allowance from the previous three years too if you want to pay more.
If you want to be active in the investment a SSAS or SIPP may be appropriate. The SSAS will cost more for one member but it can lend half it's value back to your Ltd should you need it. Both can borrow and buy commercial property which can be let to your Ltd.
You can contribute £40,000 pa and bring forward any unused allowance from the previous three years too if you want to pay more.
If you want to be active in the investment a SSAS or SIPP may be appropriate. The SSAS will cost more for one member but it can lend half it's value back to your Ltd should you need it. Both can borrow and buy commercial property which can be let to your Ltd.
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