What folks do with SIPPs?

[gazelle]

It's more than a fair point.


If you take the pension from your limited company you save yourself 29% tax (19% corporation tax, 10% on MVL rate)

£1 in salary sacrifice on your pension will save you something like 54% (40% income tax, 13.9% employer NI & Apprenticeship levy).

The pension from the ltd - would be for previous years, so not the current tax year where my inside role is (started Jun 2021), finished outside gig (Oct 2020) - had a break in between.

Thanks for the figures, it does paint quite a picture.

I understand the tax benefits of putting money into the SIPP - just got to make sure the SIPP is then invested in something worthwhile that is going to provide a return and not end up crashing and burning

[eek]

The pension from the ltd - would be for previous years, so not the current tax year where my inside role is (started Jun 2021), finished outside gig (Oct 2020) - had a break in between.

Thanks for the figures, it does paint quite a picture.

I understand the tax benefits of putting money into the SIPP - just got to make sure the SIPP is then invested in something worthwhile that is going to provide a return and not end up crashing and burning

A decent umbrella firm will pay into your existing SIPP so allowing the allowances within those previous years to be used.

[gazelle]

I'd go with this too. The personal tax/NIC saving from putting more of your new salary into a pension will almost certainly outweigh the corporation tax you might otherwise save by making company contributions.

They are for different tax years. So yes, I should sort something out pronto regarding my current inside role. But also, I should also be able to claim back CT for previous years in my LTD - but take the point it might be a drawn out exercise.

[Lance]

Vanguard LifeStrategy 100% and the like seem to be the got to for most posters that have commented though so a good look. I would be talking to an IFA if you don't know what to do though.

I have Vanguard and it has grown by around 45% over the last 8 years.
I also have a UBS S&P 500 tracker. That has grown by 37% in 4 years, and that's even with the GBP growing against the USD.
Those growth figures are growth in my real GBP value and as it's been a regular investment it's difficult to tie back to a 'fund growth' number.

[gazelle]

A decent umbrella firm will pay into your existing SIPP so allowing the allowances within those previous years to be used.

so even though I've just started my first inside role in June of this year, I can use all my inside salary to count towards previous years pension allowances - use this towards previous years allowances rather than money from LTD? - that's cracking point if allowable?

[eek]

so even though I've just started my first inside role in June of this year, I can use all my inside salary to count towards previous years pension allowances - use this towards previous years allowances rather than money from LTD? - that's cracking point if allowable?

Get yourself some proper advice but if you pay into your existing SIPP the unused allowances of the past x years will be usable. Whether your umbrella allows you to do that is a question for your umbrella but you can always move to one that will allow you to.

[Fred Bloggs]

so even though I've just started my first inside role in June of this year, I can use all my inside salary to count towards previous years pension allowances - use this towards previous years allowances rather than money from LTD? - that's cracking point if allowable?

Bear in mind the employer will still have to pay you the minimum wage at the least. That may or may not affect how much you can salary sacrifice each year.

[eek]

Bear in mind the employer will still have to pay you the minimum wage at the least. That may or may not affect how much you can salary sacrifice each year.

That comes to about £500 a week assuming a typical working week. Anything above that can go into the pension pot.