So now what do we do?

[ClothCap]

Was tempted to open a SIPP and stick in some cash at the end of every year as a tax-free way of getting some (deferred) cash out of the company but the latest shenanigans have made me feel that this is leaving me wide open to being robbed blind at a later date.

So do I take a massive divi this year and stomach the full corp tax before the dividend tax hits next year?

Leaving too much in the company seems like waiting to be shafted as well.

[northernladuk]

What is your accountants informed opinion?

How come you've no opened a pension before?

[WordIsBond]

There will be a huge outrage if they ever take away the tax-free lump sum retroactively (for savings made when that was the rule). That just isn't likely to ever happen.

Things they might do in future:
1. Change tax relief at the time of the contribution. I expect this is coming some day -- maybe even next year. Look for a flat rate of tax relief to be implemented someday.
2. Tighten restrictions on company contributions. I don't think they will ban company contributions, because they just brought in AE which forces company contributions. But I can see tighter restrictions on it coming in.
3. Bring in a new rule that for future pension contributions, there is no tax free lump sum. This might or might not happen. I'd be surprised. But I don't think they'll ever take it away for past contributions. If they got scared off changing tax relief because it was too controversial, just think how much worse taking away the lump sum would be.
4. Tighten rules on "pension freedom" if they think it went too far. Tories might not do that, but Labour could when next they come to power (or whoever replaces them if Corbyn succeeds in killing the party).

I don't see anything at all coming that would make me want to stop pension contributions now. As long as I am getting tax relief on it now, and pushing high tax rate income into lower tax rate income in future, and as long as some of it is going to be tax free when I take it out, it seems like a clear win to keep on. When the rules change, I'll evaluate whether it is worth continuing under the new rules. For now, there's no question. The current rules make it very advantageous for you to save towards retirement. That was done for good reason, and I think we'd be foolish to fail to take advantage of it. No one who makes the kind of money we make as contractors should end up needing a state pension to survive. The opportunity is there for us to do a lot better than that, and we shouldn't end up a drain on society or our families.

[LandRover]

Black hole

The government has a huge hole in it's finances, can't balance the books. We are all easy targets, so prepare for being further squeezed.

More outrage should be also directed at where all our money goes. Certainly 13 billion on foreign aid being something we all get taxed for without having a choice.

The future?

The public sector needs to grow further because of mass immigration, more schools & teachers, more hospitals, more local government officials. It's a never ending cycle.

Life in UK with 70 million + people is going to get a lot worse, not just financially in our pockets!

[ClothCap]

What is your accountants informed opinion?

Dunno, he's not a financial adviser.

[northernladuk]

Dunno, he's not a financial adviser.

That's lucky as you are after the most tax efficient thing to do before the year end which isn't an FA's forte.

[Alan @ BroomeAffinity]

Dunno, he's not a financial adviser.

Ask your financial adviser then. He'll ask " what does your accountant say?" [emoji3]

[SueEllen]

The government has a huge hole in it's finances, can't balance the books. We are all easy targets, so prepare for being further squeezed.

More outrage should be also directed at where all our money goes. Certainly 13 billion on foreign aid being something we all get taxed for without having a choice.

The 13 billion consists of mainly of bribes. They can't keep leaving it off the books like they did with BAE.

If you don't know that by now you clearly should read more broadsheets.

The future?

The public sector needs to grow further because of mass immigration, more schools & teachers, more hospitals, more local government officials. It's a never ending cycle.

The public sector will need to grow due to the current government squeezing it.

The political cycle tends to be Tory's shrink everything and then when we can take it no longer we vote Labour in. Labour then expand everything and then when we can take it no longer we vote the Tories in....

Life in UK with 70 million + people is going to get a lot worse, not just financially in our pockets!

There is space up North, in Wales and Scotland. We need to convince people to move upwards and/or westwards.

[Boo]

Ask your financial adviser then. He'll ask " what does NLUK say?" [emoji3]

FTFY

Boo