Okay a serious question. I am considering making a contribution to my personal pension straight from the Ltd company. It is the first time I have done this and there is no difficulty, to be honest. However, searching this forum brings up the idea that the payment must be judged to be a "reasonable cost" to the business, as defined by HMRC. I would hate to be frowned upon by HMRC.
The plan is to pay a big lump sum of 20k or so into the private pension, as well as taking dividends, perhaps up to and exceeding the HR threshold, all of which would leave plenty of profit in the company - enough to meet its liabilities and then some. Nothing is to be cut fine. However, would HMRC frown upon that, or coo like a dove ?
I would also make an 8k personal contribution into the same pension, out of my 10k salary. It has been a good couple of years and the pension dearly needs juicing up. All of this would stay below the 40k contribution limit.
And now for something completely different. Okay only slightly different. Anybody have experience of cheap tracker pensions ? ie. pensions invested in tracker funds ? Cavendish is about to launch one for 0.4% all in. That is much better value than my ancient Standard Life thing, and it might be time for the old switcheroo.
Cavendish : Pensions
The plan is to pay a big lump sum of 20k or so into the private pension, as well as taking dividends, perhaps up to and exceeding the HR threshold, all of which would leave plenty of profit in the company - enough to meet its liabilities and then some. Nothing is to be cut fine. However, would HMRC frown upon that, or coo like a dove ?
I would also make an 8k personal contribution into the same pension, out of my 10k salary. It has been a good couple of years and the pension dearly needs juicing up. All of this would stay below the 40k contribution limit.
And now for something completely different. Okay only slightly different. Anybody have experience of cheap tracker pensions ? ie. pensions invested in tracker funds ? Cavendish is about to launch one for 0.4% all in. That is much better value than my ancient Standard Life thing, and it might be time for the old switcheroo.
Cavendish : Pensions
Comment