How do i go about getting a pension?
Discussion
Hyena said:
trickywoo said:
This is really, really embarrassing for you now!
Errr....No, it's really not dicky.I'm never embarrassed about being proved right
Doctor: "Don't talk nonsense"
Lonely Hyena: "Doctor, don't argue with ME! Just examine it"!
Doctor: "Ok fool. Up on the table. OMIGOD!! You're RIGHT!! (bursts out laughing). You HAVE grown a fanny"!!
Lonely Hyena (smugly): "Told you:.
https://www.youtube.com/watch?v=94_snrtKGt0
Hyena said:
STURBO said:
My understanding is that a company can pay contributions of up to 40k per year per employee. And back date 3 years if a pension was in place. This is regardless of the PAYE income that employee gets.
Eg PAYE income 10k, employer pension contribution 40k is perfectly fine.
Company profit in that period is irrelevant as long as it has the funds to pay it. Pension contributions just being a valid company expense.
“Following pensions reforms, contractors can invest up to £40,000 each year to a lifetime allowance of £1.25m into their pension pot. Although it is important that the amounts must not be larger than your corporate income for the year of the contribution, otherwise there might be questions from HMRC about whether the money was actually sourced from your trading activities,” Eg PAYE income 10k, employer pension contribution 40k is perfectly fine.
Company profit in that period is irrelevant as long as it has the funds to pay it. Pension contributions just being a valid company expense.
Hoping Eric can chime in with his thoughts.
Ask your accountant
Get a (miniumum) pension, with a life insurance policy included. Stuff all the rest of you income/finance you can into property. No pension fund will beat that. My uncle once said "You don't pay tax, if you ain't got cash" I know someone who did it, retired at 50 to manage his property porfolio !! Which I'd met him earlier!
Get a (miniumum) pension, with a life insurance policy included. Stuff all the rest of you income/finance you can into property. No pension fund will beat that. My uncle once said "You don't pay tax, if you ain't got cash" I know someone who did it, retired at 50 to manage his property porfolio !! Which I'd met him earlier!
robinessex said:
Ask your accountant
Get a (miniumum) pension, with a life insurance policy included. Stuff all the rest of you income/finance you can into property. No pension fund will beat that. My uncle once said "You don't pay tax, if you ain't got cash" I know someone who did it, retired at 50 to manage his property porfolio !! Which I'd met him earlier!
Of course not. It's not as if you get tax relief with a pension wrapper. And you definitely can't invest in property either.Get a (miniumum) pension, with a life insurance policy included. Stuff all the rest of you income/finance you can into property. No pension fund will beat that. My uncle once said "You don't pay tax, if you ain't got cash" I know someone who did it, retired at 50 to manage his property porfolio !! Which I'd met him earlier!
Oh, wait...
Edited by sidicks on Thursday 13th July 22:12
If I'd invested all my spare cash into buy to let mortgages, over the last 25yrs, I'd now have a monthly income of £6000, and be a property millionaire. I (unfortunately) put it into a pension fund, and have got nowhere near that. My own house has increased in value by 7% every year of those 25 yrs.
Imagine you're 35 and you've bought a portfolio of the kind of property you CAN put in a SIPP and you did that.
Then the end of the month comes round, and the missus says "How're we doing with that property portfolio you bought via that Sipp"?
And you say "great! The rents are piling in and all's going well"!
And she says " well you're putting some effort into managing it. Let's treat ourselves to a week in Benidorm"
And then you have to explain to her that she'll have to wait 20 years at least for that.
And then you remember seeing that sad donkey on the beach in Benidorm. Sweat pishing off it as it trotted along trying to catch the carrot attached to its head by a wire. And you look in the mirror. And.......
https://thumb9.shutterstock.com/display_pic_with_l...
Sid. You know I'm only kidding.
. Having a pension's nothing like that, is it?...........IS it? 
Ps: Folks, I AM only kidding. Playing the fool. Seriously. A properly organised pension plan is a sensible thing to have.
Then the end of the month comes round, and the missus says "How're we doing with that property portfolio you bought via that Sipp"?
And you say "great! The rents are piling in and all's going well"!
And she says " well you're putting some effort into managing it. Let's treat ourselves to a week in Benidorm"
And then you have to explain to her that she'll have to wait 20 years at least for that.
And then you remember seeing that sad donkey on the beach in Benidorm. Sweat pishing off it as it trotted along trying to catch the carrot attached to its head by a wire. And you look in the mirror. And.......
https://thumb9.shutterstock.com/display_pic_with_l...
Sid. You know I'm only kidding.
. Having a pension's nothing like that, is it?...........IS it? Ps: Folks, I AM only kidding. Playing the fool. Seriously. A properly organised pension plan is a sensible thing to have.
Edited by drainbrain on Thursday 13th July 22:51
robinessex said:
If I'd invested all my spare cash into buy to let mortgages, over the last 25yrs, I'd now have a monthly income of £6000, and be a property millionaire. I (unfortunately) put it into a pension fund, and have got nowhere near that. My own house has increased in value by 7% every year of those 25 yrs.
TBH if you had done that you would have had way more than £6000 per month as most professional BTL investors would remortgage as the values rise to leverage the increased borrowing in order to facilitate additional purchases.m3jappa said:
Im going to hijack the thread here as this is relevant to me.
Im now 37 and have no pension for various reasons, now is the time i can afford to put some half decent money aside., i also have a limited company.
I've got a couple of questions though.
am i committed to paying x amount each month? what if things get hard and i decide i can't do it for a while.
can i use a company which just does everything for me. I lay driveways, i have lots of knowledge on all things paving, however choosing which companies i invest in is similar to red or black from my pov
I've been considering a stocks and shares isa but the simp sounds more tax efficient.
Mate, they're busy arguing. I know nothing, but I'll try to help. I was self-employed until fairly recently.Im now 37 and have no pension for various reasons, now is the time i can afford to put some half decent money aside., i also have a limited company.
I've got a couple of questions though.
am i committed to paying x amount each month? what if things get hard and i decide i can't do it for a while.
can i use a company which just does everything for me. I lay driveways, i have lots of knowledge on all things paving, however choosing which companies i invest in is similar to red or black from my pov
I've been considering a stocks and shares isa but the simp sounds more tax efficient.
You need to chat to an Independent Financial Advisor (IFA). I'll happily give you the details of the one who sorted my pension (and I'm not expecting to earn money off this recommendation). I'm happy with him, charges are clear and low, IMO, and growth so far in my pittance has been decent. PM me if interested but there'll be plenty local to you... try before you buy!
But use your full ISA allowance first. As others have said, that's a wrapper to keep things ring-fenced against tax, just like a pension is. A few minutes googling or on moneysavingexpert.com will give you a guide to who's paying the best rates. If you've got £20k to stash, get to it. If you've got more, do that first and then talk to an IFA. Some of them know what they're talking about...
Big Pants said:
But use your full ISA allowance first. As others have said, that's a wrapper to keep things ring-fenced against tax, just like a pension is.
I am not a financial adviser but that is not correct. Contributions to your pension are before tax, whereas ISA investments are made from your taxed income.Whilst profits from an ISA are protected from tax, the money which goes into it is taxed.
If the person you were replying to doesn't yet have a pension and I am assuming they are self employed, then in the majority of cases it would make far more sense to invest in a pension rather than an ISA.
EddieSteadyGo said:
I am not a financial adviser but that is not correct. Contributions to your pension are before tax, whereas ISA investments are made from your taxed income.Whilst profits from an ISA are protected from tax, the money which goes into it is taxed.
If the person you were replying to doesn't yet have a pension and I am assuming they are self employed, then in the majority of cases it would make far more sense to invest in a pension rather than an ISA.
STURBO said:
My understanding is that a company can pay contributions of up to 40k per year per employee. And back date 3 years if a pension was in place. This is regardless of the PAYE income that employee gets.
Eg PAYE income 10k, employer pension contribution 40k is perfectly fine.
Company profit in that period is irrelevant as long as it has the funds to pay it. Pension contributions just being a valid company expense.
Good attempt. Be careful not to confuse Employee with Director (Office Holder).Eg PAYE income 10k, employer pension contribution 40k is perfectly fine.
Company profit in that period is irrelevant as long as it has the funds to pay it. Pension contributions just being a valid company expense.
This can have NMW implications.
Remember there is NO limit to how much can be put into a pension - subject to any earnings rules if applicable. The £40k limit is for tax relief ie no more relief above this level.
Edited by Jockman on Friday 14th July 09:43
Hyena said:
The maximum annual contribution allowed is 100% of annual salary, capped at 40K. Same applies to using carry forward. You cannot just chuck in £120K regardless.
This is not correct. There is no salary cap for an Employer contribution. Yes you can chuck in £120k if a scheme was in place. I did.Remember the £40k is the tax relief cap, not the contribution cap.
Jockman said:
Good attempt. Be careful not to confuse Employee with Director (Office Holder).
This can have NMW implications.
Remember there is NO limit to how much can be put into a pension - subject to any earnings rules if applicable. The £40k limit is for tax relief ie no more relief above this level.
More misunderstandings. It is not just a case of no tax relief being available if you exceed the annual allowance. You are also subject to an an annual allowance charge.This can have NMW implications.
Remember there is NO limit to how much can be put into a pension - subject to any earnings rules if applicable. The £40k limit is for tax relief ie no more relief above this level.
Edited by Jockman on Friday 14th July 09:43
Jockman said:
This is not correct. There is no salary cap for an Employer contribution. Yes you can chuck in £120k if a scheme was in place. I did.
Remember the £40k is the tax relief cap, not the contribution cap.
Educate yourself Remember the £40k is the tax relief cap, not the contribution cap.
https://www.pensionsadvisoryservice.org.uk/about-p...
Big Pants said:
But use your full ISA allowance first. As others have said, that's a wrapper to keep things ring-fenced against tax, just like a pension is. A few minutes googling or on moneysavingexpert.com will give you a guide to who's paying the best rates. If you've got £20k to stash, get to it. If you've got more, do that first and then talk to an IFA. Some of them know what they're talking about...
Not if you are living in dickywoo land, where he has special ISAs that you can actually put inside a wrapper.Who knew?
Hyena said:
Jockman said:
Good attempt. Be careful not to confuse Employee with Director (Office Holder).
This can have NMW implications.
Remember there is NO limit to how much can be put into a pension - subject to any earnings rules if applicable. The £40k limit is for tax relief ie no more relief above this level.
More misunderstandings. It is not just a case of no tax relief being available if you exceed the annual allowance. You are also subject to an an annual allowance charge.This can have NMW implications.
Remember there is NO limit to how much can be put into a pension - subject to any earnings rules if applicable. The £40k limit is for tax relief ie no more relief above this level.
Edited by Jockman on Friday 14th July 09:43
The fact remains there is no cap as such on contributions in this scenario.
Hyena said:
The maximum annual contribution allowed is 100% of annual salary, capped at 40K. Same applies to using carry forward. You cannot just chuck in £120K regardless.
This is patently wrong.Hyena said:
Jockman said:
This is not correct. There is no salary cap for an Employer contribution. Yes you can chuck in £120k if a scheme was in place. I did.
Remember the £40k is the tax relief cap, not the contribution cap.
Educate yourself Remember the £40k is the tax relief cap, not the contribution cap.
https://www.pensionsadvisoryservice.org.uk/about-p...
"The annual allowance is a limit on the amount that can be contributed to your pension each year, while still receiving tax relief. It's based on your earnings for the year and is capped at £40,000."
Hyena said:
Here's a link which confirms that you are talking absolute garbage about company contributions
http://www.contractorcalculator.co.uk/pensions_con...
Can you just re-iterate what the LTA is, according to that article? £1.25m it says.http://www.contractorcalculator.co.uk/pensions_con...
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