Limited company - company pension?

[SueEllen]

Were you then able to expense the company contributions, i.e. deduct them when calculating corporation-tax liability?

Yep.

[BigRed]

Like you, I was asking the wrong question..

It's annoying when the 'experts' don't think outside the box. It should be as obvious as accountants recommending the fixed rate VAT scheme to IT contractors used to be.

[7specialgems]

I've taken dividends up to the higher rate threshold this year.

MyCo still has a signifiant sum of net profit from previous years ringfenced for the purposes of a pension. Does my dividend haul this year this in any way affect/diminish MyCo's ability to pay this ringfenced amount in full into a new SIPP or are directors dividends and company SIPP payments unrelated? (assuming enough net profit to fund both).

[Cirrus]

I've taken dividends up to the higher rate threshold this year.

MyCo still has a signifiant sum of net profit from previous years ringfenced for the purposes of a pension. Does my dividend haul this year this in any way affect/diminish MyCo's ability to pay this ringfenced amount in full into a new SIPP or are directors dividends and company SIPP payments unrelated? (assuming enough net profit to fund both).

You don't fund pensions out of net profit. It comes out of pre-tax revenue, so you can go into negative balance if you want to. Pensions are to do with paying workers to generate revenue; dividends are to do with shareholders taking a share of profits, so the two are unrelated (I know theoretically paying a dividend if your pension has put you into a loss could cause problems but normally it won't come to anything)

[IR35 Avoider]

If you make pension contributions out of retained earnings from previous years then presumably you are going to make a loss. You need to check that you will be able to offset that loss against corporation tax. I think you can reclaim some corporation tax from the previous year, but aside from that you will be dependent on making future profits to set against that loss.

Probably the thing to do is distribute those retained earnings as dividends in future years and put as much as possible of any new earnings into the pension. That way you only make contributions when you are sure you are going to be able to use the expense to reduce your corporation tax.

[Pegasus]

Derivatives in SIPP

Hi,

Instead of opening a new thread, thought of using the most recent thread on SIPP / company pensions.

Thinking of opening a SIPP account - looking at various options like HL, InteractiveInvestor etc.

One question - is there any SIPP which allows us to trade derivative products like futures and options? Please let me know.
(Intend to use them for hedging rather than leveraging/speculating)

Many thanks.

[adubya]

Hi,

Instead of opening a new thread, thought of using the most recent thread on SIPP / company pensions.

Thinking of opening a SIPP account - looking at various options like HL, InteractiveInvestor etc.

One question - is there any SIPP which allows us to trade derivative products like futures and options? Please let me know.
(Intend to use them for hedging rather than leveraging/speculating)

Many thanks.

Google should throw up a few, this one was the first which popped up SIPP Account | Saxo Capital Markets UK

I opened a SIPP with iWeb a couple of weeks ago and made an initial company contribution, very easy. I plan to make ad-hoc company contributions into it, perhaps a few times per year. Investing pretty much into Vanguard VWRL.

[Fred Bloggs]

Hi,

Instead of opening a new thread, thought of using the most recent thread on SIPP / company pensions.

Thinking of opening a SIPP account - looking at various options like HL, InteractiveInvestor etc.

One question - is there any SIPP which allows us to trade derivative products like futures and options? Please let me know.
(Intend to use them for hedging rather than leveraging/speculating)

Many thanks.

The SIPP accounts based around fund supermarket platforms are really intended for investments in funds and shares. For the full range of possible SIPP investment options (many things indeed, but not domestic property, sadly) you may have to look at the "full fat" versions of SIPPS that are run by specialists in that space. They usually cost more to run but offer a very wide freedom of possible investments not offered by the fund supermarket schemes.

[Pegasus]

Google should throw up a few, this one was the first which popped up SIPP Account | Saxo Capital Markets UK

I opened a SIPP with iWeb a couple of weeks ago and made an initial company contribution, very easy. I plan to make ad-hoc company contributions into it, perhaps a few times per year. Investing pretty much into Vanguard VWRL.

Thanks. Yes, had looked at Saxo Capital Markets too. Have asked them to confirm whether they allow selling single stock options on SIPP or not, as it wasn't very clear from their list of SIPP eligible investments.

Will be useful to find out if anyone here has any direct experience of using futures and options in their SIPP accounts? Please let me know.

[Pegasus]

The SIPP accounts based around fund supermarket platforms are really intended for investments in funds and shares. For the full range of possible SIPP investment options (many things indeed, but not domestic property, sadly) you may have to look at the "full fat" versions of SIPPS that are run by specialists in that space. They usually cost more to run but offer a very wide freedom of possible investments not offered by the fund supermarket schemes.

Thanks. Yes, thats right. There are a lot of "full" SIPPs which allow commercial property etc etc.
Not very keen on those, as I probably won't end up using a lot of their features (which I would be paying for).

As almost all the low-cost execution-only SIPPs allow us to buy shares, just wanted someone who would allow to buy/sell options also on those shares. I thought that would be a logical extension for the share trading account, to help us do a bit of risk management. Haven't been able to find any so far though.

Please let me know if anyone has come across anything of that sort.