Pension. Please guide.

[sammy2020]

Pension for past years

Hi, Thanks for all replies. It was really helpful, especially about differences between personal and company pension. I have decided to go for company pension route to save corporation tax. But my corporation tax year is Jan to Dec and very little time left to do company pension.

[Flashback]

Hi, Thanks for all replies. It was really helpful, especially about differences between personal and company pension. I have decided to go for company pension route to save corporation tax. But my corporation tax year is Jan to Dec and very little time left to do company pension.

Do you already have your SIPP (that you're going to pay into) open? If not, you might be out of luck for this year. If you're going to pay into another pension, just check that they will actually let you make a company contribution as not all do depending on the plan you're on.

[sammy2020]

Do you already have your SIPP (that you're going to pay into) open? If not, you might be out of luck for this year. If you're going to pay into another pension, just check that they will actually let you make a company contribution as not all do depending on the plan you're on.

I meant company pension and not SIPP which is personal pension type. Can my limited company pay me pension for 2020 in 2021? My corporation tax year runs from Jan to Dec.

[northernladuk]

I meant company pension and not SIPP which is personal pension type. Can my limited company pay me pension for 2020 in 2021? My corporation tax year runs from Jan to Dec.

You really need to either speak to a professional or start learning quick. This is a lot of money you are messing with here and you are making mistakes/asking some very basic questions.

[Lance]

Do you already have your SIPP (that you're going to pay into) open? If not, you might be out of luck for this year. If you're going to pay into another pension, just check that they will actually let you make a company contribution as not all do depending on the plan you're on.

It’s possibly not too late if the OP had the faintest idea what to do.
Pick the right platform, opened with a personal payment of say £100, and follow up with faster payment from business account.

But the wisest thing would be to accept that the boat has been missed rather than risk drowning by trying to jump from the pier to get on board.

[sammy2020]

It’s possibly not too late if the OP had the faintest idea what to do.
Pick the right platform, opened with a personal payment of say £100, and follow up with faster payment from business account.

But the wisest thing would be to accept that the boat has been missed rather than risk drowning by trying to jump from the pier to get on board.

Thanks for all criticism. You are right, I don't understand much of this as I never thought of these things and started contract job first time in career. There isn't much time because of personal circumstances. That's why I am coming here for help from you all.

I have now opened pensionbee account and started contribution process for limited company. 2nd option from below

1. Personal / sole trader
Payments made from a UK personal bank account or a sole trader business bank account.
2. Limited company
Payments made from your own limited company business account as the director.
3. Employer
Payments made from your employer on your behalf, that aren't part of an auto-enrolment scheme.


They gave bank details where to send money with reference number to be used during transfer. That's all. Checked vanguard, fidelity etc and they take weeks for this. Will pay 40k into this account today evening.

Thanks.

[Flashback]

You really need to either speak to a professional or start learning quick. This is a lot of money you are messing with here and you are making mistakes/asking some very basic questions.

Exactly this.

It’s possibly not too late if the OP had the faintest idea what to do.
Pick the right platform, opened with a personal payment of say £100, and follow up with faster payment from business account.

But the wisest thing would be to accept that the boat has been missed rather than risk drowning by trying to jump from the pier to get on board.

Yes, but if opening a pension account (if it's new, for example) for the purposes of making Employer contributions what I'm saying is don't expect the account to be open and ready for use on the same day. It can take up to 7-10 business days.

I agree, this year has most likely been missed.

Also, to answer the OP's first query you can make the 2020/21 contribution any time in the next ~3 months, or the 3 years after that with Carry Forward assuming you still have some of the £40k allowance remaining.

However, by not paying any of that in the next 2.5 days you won't get the corporation tax relief (by reduced profits) in your current company year which you said will finish on 31/12/2020.

[sammy2020]

all sorted now.

Exactly this.



Yes, but if opening a pension account (if it's new, for example) for the purposes of making Employer contributions what I'm saying is don't expect the account to be open and ready for use on the same day. It can take up to 7-10 business days.

I agree, this year has most likely been missed.

Also, to answer the OP's first query you can make the 2020/21 contribution any time in the next ~3 months, or the 3 years after that with Carry Forward assuming you still have some of the £40k allowance remaining.

However, by not paying any of that in the next 2.5 days you won't get the corporation tax relief (by reduced profits) in your current company year which you said will finish on 31/12/2020.

All sorted now. Thanks. Pensiobee have also sent me value statement which reflects the amount of 40k.

[Flashback]

All sorted now. Thanks. Pensiobee have also sent me value statement which reflects the amount of 40k.

Perfect, good to know if you're in a bind and time sensitive then Pensionbee can spin up an account for you pretty quickly. I guess you can then transfer from there to your preferred SIPP provider (assuming PB is no good to hold onto longer term!).

[sammy2020]

Perfect, good to know if you're in a bind and time sensitive then Pensionbee can spin up an account for you pretty quickly. I guess you can then transfer from there to your preferred SIPP provider (assuming PB is no good to hold onto longer term!).

I think they have a penalty of £480

"While our drawdown option is free of charge, if you withdraw everything within 12 months of having a live balance with us a full withdrawal fee of £480 applies. This fee will also be charged if the balance of your account is less than £480 at the point of withdrawal. All our figures include VAT where applicable."

Yes but I can transfer after 12 months. Next year I will try vanguard, as suggested by many here. Good to keep your money in different places may be.
Vanguard takes weeks to verify company details Vanguard: Helping you reach your investing goals | Vanguard "Please be aware, it may take a few weeks to verify your company before we can accept your first payment."