Invest my ltd company funds?

[trowelhead]

Long term loans thing sounds good - might have to ask my accountant on thoughts about this.

Also - if i open a pension, can i do a regular SIPP via HL - and my company pay directly into that

Or do i need something more complex e.g SSAS etc?

[trowelhead]

vindaloo79 said:

All claims to this exemption must be dealt with by an Inspector (see EIM26152). Experience shows that few cases meet the tests set out below.

I generally feel less contact I have with tax inspectors the less hassle and time I am going to have with them. I don't have any clue if it is a formality getting these kind of things agreed

Edited by vindaloo79 on Wednesday 14th March 13:53

I agree - don't fancy it much on that basis ha ha

[anonymous-user]

trowelhead said:

Long term loans thing sounds good - might have to ask my accountant on thoughts about this.

Also - if i open a pension, can i do a regular SIPP via HL - and my company pay directly into that

Or do i need something more complex e.g SSAS etc?

I use a SSAS. This means I can make and manage contributions for my wife. (and others in theory)
My kids are also in the same scheme.


Probably worth sitting down with an expert for a few hundred quid.

[williaa68]

If you just want to invest IG do corporate accounts and are easy to deal with. My company has bought a bunch of investment trusts and some corporate bonds through them.

[98elise]

msport123 said:

I thought there was a limit on what you can take out via directors loan and payback within the 9 month window - interest free. Didn't think you could go overdrawn by anymore than 5-10k?

It's not interest free. I have to pay my company 3% (IIRC) however it's now my company making that money, not the mortgage company.

The company's money is now working for the company.

[98elise]

trowelhead said:

Long term loans thing sounds good - might have to ask my accountant on thoughts about this.

Also - if i open a pension, can i do a regular SIPP via HL - and my company pay directly into that

Or do i need something more complex e.g SSAS etc?

I have a regular H&L SIPP and pay direct from my company. My accountant said this was the best way to do it.

[CzechItOut]

trowelhead said:

Long term loans thing sounds good - might have to ask my accountant on thoughts about this.

Also - if i open a pension, can i do a regular SIPP via HL - and my company pay directly into that

Or do i need something more complex e.g SSAS etc?

I have a SIPP which I consolidated all my old pensions in to. Now my LTD company makes an employer contribution directly into my SIPP. That way it means you don't have to do anything with your personal tax.

[msport123]

98elise said:

It's not interest free. I have to pay my company 3% (IIRC) however it's now my company making that money, not the mortgage company.

The company's money is now working for the company.

Ahhhh - I think I get it now. Assume the interest going into the company would be treated as profits so therefore subject to corp tax and if/when you want to get your hands on it dividend tax will also be applicable.

For maximum benefit would it not make sense to pay the interest going into the Ltd as a directors pension contribution therefore avoid corp tax. I guess you could effectively pay very little interest in this manner providing you use an an offset mortgage which has similar rates as the HMRC beneficial loan rate.

Instead of paying the interest to the mortgage company, you pay it to your LTD, which then pays it to your pension, which means you get to retain 100% of the interest you would have normally br paying to the mortgage co. Sound like a plan....

Or have I got that all ‘arse about face’?

Edited by msport123 on Wednesday 14th March 23:55

[Jockman]

98elise said:

I have a regular H&L SIPP and pay direct from my company. My accountant said this was the best way to do it.

Yup. Employer contribution generally trumps employee contribution.

Just keep your eye on the tapered annual allowance.

[Jockman]

desolate said:

trowelhead said:

Long term loans thing sounds good - might have to ask my accountant on thoughts about this.

Also - if i open a pension, can i do a regular SIPP via HL - and my company pay directly into that

Or do i need something more complex e.g SSAS etc?

I use a SSAS. This means I can make and manage contributions for my wife. (and others in theory)
My kids are also in the same scheme.


Probably worth sitting down with an expert for a few hundred quid.

Good advice.

I used to run our SSAS 15 years ago before we moved to PP then SIPP. Did the accounts myself as they were so easy and it was a very small scheme.

Not sure of today’s rules but the 2 attractions of the SSAS were the ability for it to lend money to the Company, with interest being roi, and for the notional earmarking of the pots when it came to family members retiring.

[trowelhead]

98elise said:

trowelhead said:

Long term loans thing sounds good - might have to ask my accountant on thoughts about this.

Also - if i open a pension, can i do a regular SIPP via HL - and my company pay directly into that

Or do i need something more complex e.g SSAS etc?

I have a regular H&L SIPP and pay direct from my company. My accountant said this was the best way to do it.

Cheers, going to get that setup today

[sbk1972]

Ok, so being thick, more of a script writing than an accountant, does the below ring true.

Using simple figures :_

£100K Revenue a year.

Salary £15K

Dividends = £40K

Expenses - employee and company = £15K

£30K left.

Usually I then get hit for Corp Tax on 30K.

Instead, could I then just transfer £20K from my LTD over to my personal SSIP ? Do I need to create the SIPP in my company name ?

On my accounts I just have an entry - Pension contribution - SSIP = £20K.

Will this make HMRC suddenly take interest in me ? Do I have to keep an eye out for changing tax laws ? I would imagine there is a max figure I can through in ?

When I can I then remove funds from the SIP ?

The guy above mentioned he does a SSIP for his kids / wife too ?? His company pays out to individual SIPPS create in each of their names ?

Forgive me if I seem thick, I am. :-)
SBK

[anonymous-user]

All sounds ok to me.
SIPP funds can be taken the same as any other pension.


I am an enthusiastic amateur in this field, not a professional.

[Zoon]

I assume you do not get personal tax relief as well as corporation tax relief on company pension contributions?

[anonymous-user]

Zoon said:

I assume you do not get personal tax relief as well as corporation tax relief on company pension contributions?

Once you get past your annual allowances that's right.

I am sure if you have a SSAS you can make payments for other members to maximise the family income (eg your Mrs)

World of pain if that goes wrong.

[Jockman]

Zoon said:

I assume you do not get personal tax relief as well as corporation tax relief on company pension contributions?

Correct. The relief is through Corp tax, currently 19%.

[anonymous-user]

Jockman said:

Zoon said:

I assume you do not get personal tax relief as well as corporation tax relief on company pension contributions?

Correct. The relief is through Corp tax, currently 19%.

I can't see why you couldn't put all surplus profits into a SIPP if you didn't mind the cash being tied up.
If you have assets you could even lend it back to the company and earn interest.

[Jockman]

desolate said:

Jockman said:

Zoon said:

I assume you do not get personal tax relief as well as corporation tax relief on company pension contributions?

Correct. The relief is through Corp tax, currently 19%.

I can't see why you couldn't put all surplus profits into a SIPP if you didn't mind the cash being tied up.
If you have assets you could even lend it back to the company and earn interest.

Your first point theoretically yes subject to HMRC limits, though remember a company will need liquidity to sustain itself and may have other projects for which those funds could be allocated.

Secondly as I mentioned to you above a SSAS can lend to your company though I’m not sure of current regs as I’m out of this loop. Great way of paying yourself interest as you say though when I did it you had to ensure a commercial rate. Today’s commercial rates can be beaten by more risky investments so it really depends on your attitude to risk.

Last time I looked a SIPP cannot offer this function.

[anonymous-user]

Do you know what the "HMRC limit" is?

Is it for a company or per person?

[Jockman]

It’s the £40k annual pension allowance. Per person. Includes all contributions from any source.

You trying to max all the family?