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SIPP contributions - personal vs via Ltd Company

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    #11
    Originally posted by eek View Post
    Can you use previous year's allowances if you didn't contribute the full £50,000 last year?
    Yes, you can actually utilise unused allowances from the previous three pension input periods (this may not be the same as the tax year).

    Also, the £50,000 previously mentioned is being reduced to £40,000 in 2014/15.

    Craig

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      #12
      Originally posted by Craig at Nixon Williams View Post
      Remember in this example, the maximum that you can contribute to a pension each year is £50,000.

      Craig
      Yes, sorry I was forgetting the limit which was introduced more recently. It is going down to £40,000 for 2014/2015

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        #13
        In order to use unused allowance from previous years, you do actually have to have had a pension scheme then, even if you didn't contribute to it.

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          #14
          Good point!

          You must also earn as much as you wish to contribute during that year.

          For example - say I had unused allowances for £25,000 from the past 3 years plus my £50,000 allowance this year, I could make a contribution of £125,000 to my pension - however I must earn at least £125,000 this year in order to do this. My earnings from the previous 3 years would not count towards this.

          Craig

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            #15
            Thanks guys

            Sounds like company contributions are the way to go, ta.

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