Ltd co director pension

[Canute]

I'm running a Ltd company that makes a small profit each year which instead of taking a salary from, I'd be keen to see if I could put 100% of profit into a pension for myself.

I'm the only member of staff/director in this entity.

Before I talk to my accountant, is this a legit thing to do and if so, what would be a sensible place to start with when it comes to actually setting up the pension? Is there something specific I should be asking of my accountant also?

Thanks

[shopper150]

It’s possible, as long as you have enough net relevant income.

[anonymous-user]

Yep. My last 18 months I took no salary and basically put everything into a pension fund.

You have to ensure you have enough income, but if not you can also use previous years allowances to help cover it

[Canute]

Thanks

Let's say the company clears £1000 per month profit, am I able to put £1000 directly into the pension each month?

[anonymous-user]

Canute said:

Thanks

Let's say the company clears £1000 per month profit, am I able to put £1000 directly into the pension each month?

Details should be clarified with your accountant tbh. No one else can confirm if what you think is clearing £1000 is actually the case

[98elise]

shopper150 said:

It’s possible, as long as you have enough net relevant income.

Surely not when it's a company contribution. IIRC any directors pension contributions are best made through the company.

[Sheepshanks]

98elise said:

Surely not when it's a company contribution. IIRC any directors pension contributions are best made through the company.

..and in the exact example the OP gave, that would mean the company wasn't making a profit. That may or may not matter.

[Canute]

Slightly vague comments towards the end here, but I'm assuming you are referring to keeping the company in profit after my proposed exercise. I don't see a reason why I can't leave a margin in the business each year to cover this. Is this what is being referred to?

Thanks all.