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  1. #1

    Nervous Newbie


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    Default Limited company - company pension?

    I am a contractor working through my limited company. I wonder if there is a way to have my company make, and expense, pension contributions - vs. me withdrawing dividends and making pension contributions out of my after-tax personal income. Can anyone advise?

    Thank you.

    PS. The "financial advisor" recommended by SJD did not even respond to the email with this query. Fidelity, with whom I hold a SIPP, advised me that "Fidelity does not offer one man limited company pension plans within our Defined Contribution pension arrangements".

  2. #2

    Contractor Among Contractors

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    Yes, yourCo can set up a pension and pay directly into it.

    Give Ian Wilson a call at Forum Wealth. Lovely chap, he'll give you a detailed consultation for free.

    He consolidated various crappy pots into one plan, when all other IFA's told me that wasn't possible.
    I reject your reality and substitute my own - Adam Savage
    Me on LinkedIn | 15% off your first year's IPSE membership

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    Lord of the Vectras

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    As I discovered after a lot of hassle and stress last year, you don't need a company pension scheme to make company contributions. The system is very confused thanks to the requirement for all employers to enrol employees in a company pension scheme, and I was also told by several people that they don't do pension schemes for one man Ltd. companies. But that doesn't apply to the likes of us.

    Like you, I was asking the wrong question. Ask Fidelity if your employer can make contributions to your personal pension.
    Will work inside IR35. Or for food.

  4. #4

    Fingers like lightning

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    My company makes employers contributions to a stakeholder pension. This was a stakeholder I had from a previous employment. Stakeholder can take both personal payments and employer payments.

    Alternatively, if you are an IPSE member, then you could take a look at their offering:
    https://www.ipse.co.uk/futures/ipse-pension

  5. #5

    Fingers like lightning

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    Quote Originally Posted by demyan1 View Post
    Fidelity, with whom I hold a SIPP, advised me that "Fidelity does not offer one man limited company pension plans within our Defined Contribution pension arrangements".
    As others have said, you asked the wrong question.
    You can pay from your company directly into a Fidelity SIPP
    At this link there are at least 2 places that mention employer contributions.
    https://www.fidelity.co.uk/investor/...asket-employer

    What they probably said was that your company cannot setup a SIPP for you (which they can't, it's PERSONAL).
    I opened my SIPP using £80 of my own cash and setup company contributions once it was activated. That was Hargreaves Landsdown.

  6. #6

    More time posting than coding

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    Quote Originally Posted by demyan1 View Post
    I wonder if there is a way to have my company make, and expense, pension contributions - vs. me withdrawing dividends and making pension contributions out of my after-tax personal income.
    The advantage is if the company pays directly into your SIPP then you are not bound by the earnings cap. You can give yourself up to the full £40k irrespective of what you 'earn'.
    Contracting = Working = Wasting your life away

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    Still gathering requirements...


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    Quote Originally Posted by Cirrus View Post
    The advantage is if the company pays directly into your SIPP then you are not bound by the earnings cap. You can give yourself up to the full £40k irrespective of what you 'earn'.
    Indeed. You also bypass the possibility of having to pay both Employer's and Employee's NI on the amount being paid into the pension.

  8. #8

    Nervous Newbie


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    Quote Originally Posted by Cirrus View Post
    The advantage is if the company pays directly into your SIPP then you are not bound by the earnings cap. You can give yourself up to the full £40k irrespective of what you 'earn'.
    Sorry, where does the £40k number come from?

  9. #9

    My post count is Majestic

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    Quote Originally Posted by demyan1 View Post
    Sorry, where does the £40k number come from?
    http://www.pensionsadvisoryservice.o...nual-allowance
    'CUK forum personality of 2011' - Winner - Yes really!!!!

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    Nervous Newbie


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    Quote Originally Posted by Lance View Post
    I opened my SIPP using £80 of my own cash and setup company contributions once it was activated. That was Hargreaves Landsdown.
    Were you then able to expense the company contributions, i.e. deduct them when calculating corporation-tax liability?

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