Investments from company

[chrisl]

I have been told i can invest money in investment funds from my Ltd company before corporation tax etc the same way you would with an employer pension contribution.

Is the correct and would it have any implications?
Would this also be claimed as an expense to my company or not?

[moorfield]

Originally Posted by chrisl

I have been told i can invest money in investment funds from my Ltd company before corporation tax etc the same way you would with an employer pension contribution.

Is the correct and would it have any implications?
Would this also be claimed as an expense to my company or not?

Has been debated a lot already on here. IMHO simplest/cheapest way is to invest via a SIPP (employer contribution). Take 25% tax free at 55, use the rest for an income.

[Waldorf]

Not another pension convert!

Whilst the tax savings can be tempting, the rules enforcing you to take a pension and hand over your cash to some fact cat insurance company in return for a mean return is not what I am going to do.

I have started using my company for some investments, altough most are held outside in Isa's etc.

[pmeswani]

Originally Posted by Waldorf

Not another pension convert!

Whilst the tax savings can be tempting, the rules enforcing you to take a pension and hand over your cash to some fact cat insurance company in return for a mean return is not what I am going to do.

I have started using my company for some investments, altough most are held outside in Isa's etc.

Assuming I'm still contracting by company year end, Most of my spare cash will be going into my pension. The potential returns are a lot higher.

Like investments, nothing is guaranteed.

[Churchill]

Originally Posted by pmeswani

Assuming I'm still contracting by company year end, Most of my spare cash will be going into my pension. The potential returns are a lot higher.

Like investments, nothing is guaranteed.

Yeah, and if it all goes tits up you can always sponge off the state for the rest of your miserable unhappy life.

[moorfield]

Originally Posted by Churchill

Yeah, and if it all goes tits up you can always sponge off the state for the rest of your miserable unhappy life.

tits down - tits up is a good thing if you think about it

[moorfield]

Originally Posted by Waldorf

Whilst the tax savings can be tempting, the rules enforcing you to take a pension and hand over your cash to some fact cat insurance company in return for a mean return is not what I am going to do.

SIPPs are much more flexible and competitive than insurance companies these days - eg. if you went for the passive approach with the cheapest index tracker with HL you'd pay only 0.25%, and now you're not forced to buy an annuity.

My plan is to put just enough into a pension to give me 25% tax free at 55 and then (in todays money) an income of 6k / year from 55 ie just below any future basic rate tax band. The rest will come from ISAs (tax free) and any surplus will go into the missus's pension - again just enough to go up to approx 6k / year income.