Employer contribtions to SIPP - but receiving minimal income
Discussion
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
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 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.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.
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
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
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