Going to the Darkside - what to do with Company any ideas

[ladymuck]

Just to add

sorry I never edited the post to add that, cant see any reason why I would need to do that

We know

[NotAllThere]

Not all of it it seems.

I think he's editted it on purpose to make me look like an idiot....

I checked. He didn't edit it. You are an idiot, I'm afraid.

[Lockhouse]

Pension, all day every day. It's free money. Plus you can draw on some of it tax free at 55.

[eek]

Pension, all day every day. It's free money. Plus you can draw on some of it tax free at 55.

57 now with the latest changes but it's best not to unless you really need to.

[rootsnall]

57 now with the latest changes but it's best not to unless you really need to.

Where have you got that from ? Still 55 the last time I looked.

Original Poster - you just pay into your pension directly from your Ltd ( max £40K + 3 years backdating if unused) , it counts as an expense. So tax and NI free until withdrawn. If you can afford to do it and not pay dividends it's a bit of a no brainer tax and NI wise.

Taking 25% Tax-free Cash from your Pension

[GregRickshaw]

Just went dormant with mine

I decided to keep my LTD, I haven't gone to the total dark side, I went back to Umbrella. I took a contract which is 'on the tools' to get through Covid etc.,

Most of my contracts will always be considered outside anyway, yes I don't do anything but talk

So I made my LTD dormant, there's money still in there and I'm going to leave it there until I get better advice on what to do with it when I get near 57.

[eek]

Where have you got that from ? Still 55 the last time I looked.

Original Poster - you just pay into your pension directly from your Ltd ( max £40K + 3 years backdating if unused) , it counts as an expense. So tax and NI free until withdrawn. If you can afford to do it and not pay dividends it's a bit of a no brainer tax and NI wise.

Taking 25% Tax-free Cash from your Pension

It's Govt confirms 2028 rise in pension freedom age - Pensions Age Magazine - not until 2028 though so it's delayed a bit

[rootsnall]

I decided to keep my LTD, I haven't gone to the total dark side, I went back to Umbrella. I took a contract which is 'on the tools' to get through Covid etc.,

Most of my contracts will always be considered outside anyway, yes I don't do anything but talk

So I made my LTD dormant, there's money still in there and I'm going to leave it there until I get better advice on what to do with it when I get near 57.

You are ok still at 55 ( see eek's latest post ). You really should be paying as much as you can afford into a SIPP. I am working through an umbrella and paying myself the minimum wage on hours worked and the rest ( the vast majority of it ) goes into a SIPP. My tax and NI bill comes to sums like 57p :-) It is taxable when it comes out of the SIPP but you'll have £12K tax free and you've avoided a double dose of NI.

My Ltd got fully struck off today

[NowPermOutsideUK]

Original Poster - you just pay into your pension directly from your Ltd ( max £40K + 3 years backdating if unused) , it counts as an expense. So tax and NI free until withdrawn. If you can afford to do it and not pay dividends it's a bit of a no brainer tax and NI wise.

Can i just ask whether you are sure about the year back pay? If you have not paid anything for the last few years can you really put up to 120K in one tax year into your pension? I did a google search as well

[rootsnall]

Can i just ask whether you are sure about the year back pay? If you have not paid anything for the last few years can you really put up to 120K in one tax year into your pension? I did a google search as well

SIPP Allowance, SIPP Maximum Contribution Limit, HMRC Investment Rules

Pension carry forward

Pension carry forward rules let you make contributions above your annual allowance. If you paid in less than your annual allowance in any of the past three tax years you can carry forward the unused allowance, as long as you had a SIPP or other pension in place for each of the three years and your total contributions don’t exceed your current earnings.


So you'd need to earn it in the current year.