SIPP Pension contributions - 2 Directors

[aneecha]

Hello experts,
Myself and my wife are both IT contractors working for 2 separate clients (outside IR35) and contributing more or less equally to our company's revenue.
We are both directors with 50:50 share holding.

Currently, we are not contributing any pensions(neither employee nor employer).

I have opened an SIPP account recently and not paid into it (zero balance for this FY)

My question is , how much can my company(employer) contribute as Employer Pensions? Is it 40k£ for individual director and 80K in total.
The profit is sufficient to cover these 'expenses'.

Please advise.

Thanks.

[Fred Bloggs]

£40k each.

[Lance]

£40k each.

And into different SIPPs.
OP has recently opened one SIPP so might have an idea of dumping all £80k into it.

[Fred Bloggs]

And into different SIPPs.
OP has recently opened one SIPP so might have an idea of dumping all £80k into it.

SIPPs cannot be joint names. Presumably the OP knows that.

[northernladuk]

SIPPs cannot be joint names. Presumably the OP knows that.

I'm not so sure about that.

[ladymuck]

And you don't have to have profit to pay into a pension, just cash.

[Paralytic]

And you don't have to have profit to pay into a pension, just cash.

I'd say its more correct to state it doesn't have to be from profit, but retained profit (rather than cash). eg, if the company had £20K in the bank, but that is needed to pay off CT, then be careful before sticking that into a pension.

Also, OP, if you or your wife were a member of any registered pension scheme over the previous 3 years, you can carry forward £40K from these years and pay that into your SIPP (even though the SIPP has just been opened).

See Carry Forward Annual Allowance

And remember you can pay £40K each now, and the same again from April 6th.

[Fred Bloggs]

I'm not so sure about that.

I am. 100% sure. Read here -

Frequently Asked Questions | Dentons Pensions

Is it possible to open a SIPP in joint names?

Answer - No, a SIPP is for an individual.

[Lance]

I'd say its more correct to state it doesn't have to be from profit, but retained profit (rather than cash). eg, if the company had £20K in the bank, but that is needed to pay off CT, then be careful before sticking that into a pension.

Also, OP, if you or your wife were a member of any registered pension scheme over the previous 3 years, you can carry forward £40K from these years and pay that into your SIPP (even though the SIPP has just been opened).

See Carry Forward Annual Allowance

And remember you can pay £40K each now, and the same again from April 6th.

It doesn't have to be from retained profit, or profit at all, as pensions are an expense.

Putting the company into a position where it cannot afford to pay its creditors is a problem but not related to pensions per se.
It's no different to office costs, postage, new laptop, salary etc.

[Lance]

I am. 100% sure. Read here -

Frequently Asked Questions | Dentons Pensions

Is it possible to open a SIPP in joint names?

Answer - No, a SIPP is for an individual.

read your post that NLUK was responding to again.